Allianz Real Estate’s Japan multi-family fund acquires 12 assets

Japanese 1,000 yen notesJapanese 1,000 yen notes

Allianz Real Estate has entered a deal to acquire a portfolio of 12 prime multi-family residential assets in Tokyo, Japan, for around US$90 million for the Allianz Real Estate Asia-Pacific Japan Multi-Family Fund I (AREAP JMF I), the real estate investment manager (REIM) said in a press release Wednesday. 

The portfolio of 12 newly built assets has more than 280 units is located in Tokyo 23 Wards, generally less than 10 minutes from the nearest train stations, Allianz Real Estate said. 

The assets will be acquired when they are completed and, as part of AREAP JMF I’s strategy, will be leased and stabilized to be held long term, the REIM said. 

“This portfolio marks AREAP JMF I’s maiden acquisition and affirms our conviction in the attractiveness of Japan’s multi-family residential sector, which continues to be supported by secular trends such as rapid urbanization,” Daisuke Nogushi, head of Japan for Allianz Real Estate, said in the statement. 

“Moving forward, we will continue to target quality assets in the four major cities of Japan. We will also prioritize the use of renewable energy, implementation of green leases, green certifications and other related initiatives as part of our investors’ steadfast commitment to ESG,” Nogushi said. 

The fund was established in December 2021 to focus on newly completed residential assets in Tokyo, Osaka, Nagoya and Fukuoka. It currently has an equity commitment of US$750 million, including US$250 million each from Ivanhoe Cambridge, which is the real estate subsidiary of Caisse de Dépôt et placement du Québec (CDPQ), and Allianz Group companies, the filing said. The fund is expected to have investment capacity of US$2 billion in gross asset value once it’s fully invested, the REIM said.

Laurent Fischler, head of investments for Asia-Pacific for Ivanhoé Cambridge, said the acquisitions reinforced the CDPQ subsidiary’s ambitious diversification strategy in Japan and Asia-Pacific.

“In a market where rising housing prices have resulted in a lack of affordability and ownership of well-located assets, this project will provide a new solution, boasting urban regeneration benefits and occupant experience improvements,” Fischler said in the statement.

Correction: This item originally misstated the day the announcement was made. The statement was released on Wednesday.

 

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