Ares Management Corporation (NYSE: ARES) has closed its fifth Japan-focused logistics real estate development fund, Japan Logistics Development Partners V, at its hard cap of ¥612 billion (approximately $4 billion), according to a press release from the company.

The fund, which includes LP equity commitments and a GP commitment, is nearly 50% larger than its 2021 predecessor, JDP IV, which raised ¥412 billion. Ares describes it as the largest closed-end institutional fundraise in its real estate division to date.

Canada Pension Plan Investment Board (CPP Investments) served as a cornerstone investor, committing ¥150 billion (approximately $968 million). CPP Investments has participated in every vintage of the JDP fund series since its inception in 2011. Other investors include pension funds, sovereign wealth funds, insurance companies and financial institutions from North America, Asia-Pacific, Europe and the Middle East.

JDP V will primarily invest in the development of logistics facilities across Japan's key metropolitan markets, including Greater Tokyo, Greater Osaka and Nagoya. The fund carries a total investment capacity of ¥1.7 trillion (approximately $11 billion) and has already committed to projects representing approximately ¥450 billion in total investment.

Investments will be developed and operated by Marq Logistics, Ares' logistics real estate platform, which manages approximately 120 million square feet in Japan and over 655 million square feet globally, as of June 30, 2026.

The fundraise follows Ares' acquisition of GCP International in March 2025. Ares Real Estate manages approximately $121 billion in assets as of June 30, 2026.

"The successful close of our largest closed-end real estate fund to date reflects the strength of the team's track record, the compelling opportunity set in Japan and the benefits of Ares' scaled real estate platform," said Julie Solomon, Partner and Head of Ares Real Estate.

Gilles Chow, Managing Director and Head of Real Estate Asia Pacific at CPP Investments, said the fund "provides compelling exposure" to modern logistics infrastructure themes and aligns with the organization's approach to portfolio diversification.