Japan’s Daiwa to launch healthcare REIT

14 May 2014   Category: News, Asia, Global, Japan   By Maya Ando

Japan’s Daiwa Real Estate Asset Management, a subsidiary of Daiwa Security Group, has announced plans for a real estate investment trust (REIT) specialising in healthcare-linked properties.

The Japan Health Care Investment Corporation REIT will operate eight homes for the elderly with 9 billion yen (US$87.99 million) in AUM. It is expected to increase the fund size to between 20 billion yen and 30 billion yen by autumn this year, prior to an anticipated listing on the Tokyo Stock Exchange.

According to government statistics, around a quarter of Japan’s population is aged 65 years old or over, with the costs associated with caring for this demographic anticipated to double to 19.8 trillion yen by 2026.

In order to meet this increasing demand, a number of mutual funds are launching products catering to the sector. Mitsubishi UFJ Trust and Banking, Shinsei Bank and Sompo Japan Insurance will launch a joint REIT called Japan Senior Living Partners, alongside real estate provider Kenedix, Haseko Corporation and interiors firm Lixil Group.

The Japan Senior Living Partners REIT is expected to list on the local stock market in the second half of this year with 500 billion yen AUM, which could increase to 1 trillion yen. The fund will invest in areas including serviced homes and hospitals for senior citizens.