LOGI FLAG's 'next-generation logistics facility' was created to solve all the

Kasumigaseki Capital’s Bold Move to Transform the Refrigerated Warehouse Industry

The refrigerated and frozen warehouse industry is on the brink of transformation, addressing challenges like the impending "2030 problem" and the "2024 logistics issue."

Kasumigaseki Capital, a consulting developer, is at the forefront of this revolution. Since entering the logistics sector three years ago, the company has initiated the development of 18 state-of-the-art refrigerated and frozen warehouses across Japan. Eight facilities are already operational, with storage services under the COLD X NETWORK brand launching in Miyoshi Town, Saitama Prefecture, this November.

By focusing on multi-tenant, rental refrigerated warehouses, environmentally sustainable logistics, and a flexible usage model, Kasumigaseki Capital aims to resolve the pressing issues facing the industry.

Meeting Market Needs with Multi-Tenant Refrigerated Warehouses

Kasumigaseki Capital, established in 2011, initially revitalized shopping centers damaged by the Great East Japan Earthquake. Driven by a philosophy of creating businesses that address societal needs, the company expanded into logistics, healthcare, and hospitality development.

Their attention has now turned to refrigerated and frozen warehouse facilities, driven by the growing demand for frozen food storage and the aging infrastructure in this sector.

The 2030 Problem: The global phase-out of specific fluorocarbons (CFCs and HCFCs) under the Montreal Protocol mandates the replacement of outdated refrigerant systems. For aging warehouses, this transition poses significant financial and logistical hurdles, risking a supply shortage amid rising demand.

Kasumigaseki’s Solution:

The company’s multi-tenant, rental refrigerated warehouses address these challenges by offering:

• Shared facilities to reduce tenant costs.
• Ready-to-use refrigeration infrastructure, eliminating the need for tenants to invest in expensive equipment.
• A range of customizable temperature zones (frozen, chilled, or ambient) to meet diverse storage needs.
• Modular designs for smaller-scale facilities, increasing adaptability to market demands.

These features allow operators to launch or expand their operations flexibly, even amidst industry uncertainties.

Pioneering Environmentally Sustainable Logistics

Kasumigaseki Capital is also committed to environmental sustainability through its LOGI FLAG brand, which includes:

• LOGI FLAG COLD – Refrigerated storage.
• LOGI FLAG TECH – Automated warehousing solutions.
• LOGI FLAG DRY & COLD – Warehouses with three distinct temperature zones.

By adopting natural refrigerants (CO₂) instead of fluorocarbons, the company is reducing its environmental impact while ensuring business continuity for tenants. Additional green initiatives include:

• Installing solar panels on warehouse rooftops to harness renewable energy.
• Designing facilities with energy-efficient systems to lower carbon footprints.

Flexible Storage Solutions with COLD X NETWORK

The new COLD X NETWORK brand offers a game-changing approach to storage services. Clients can rent precisely the space they need for any desired duration, from a single day to long-term leases. This model accommodates fluctuations in demand driven by seasonal variations or specific business needs, providing unparalleled flexibility to shippers and operators alike.

Nationwide Expansion

As of October 2023, Kasumigaseki Capital has completed nine refrigerated warehouse facilities across major prefectures, including Chiba, Kanagawa, Saitama, Kyoto, Fukuoka, Miyagi, and Aomori. With 18 projects underway nationwide, the company is cementing its position as a leader in the refrigerated logistics sector.

Through innovation, environmental stewardship, and a tenant-centric approach, Kasumigaseki Capital is not only addressing the challenges facing the refrigerated warehouse industry but also setting new standards for its future.

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