Aberdeen Standard Investments has formed a joint venture with Japan’s Sumitomo Mitsui Trust Bank (SuMi Trust) to invest in Asia Pacific property as the Scottish asset manager looks to expand its global investment offerings.
It will target investments in residential assets in mature markets in the region, primarily in Japan, including multi-family buildings, homes for seniors, student housing and corporate residences, Aberdeen Standard Investments says in a statement on June 4.
Assets to be acquired may be uncompleted projects, or older established buildings with renovation potential so as to boost income and capital, the company says, adding that environmental, social and governance factors will be included in the investment process.
It says the investment strategy is underpinned by continued urbanisation in Japan, especially in bigger cities like Tokyo and Osaka, and bolstered by “significant” gaps in rentals and yields between new and older properties.
“The joint venture is an important step in expanding our global investment offering, as we continue to address investors’ need for alpha and diversified return,” David Paine, global co-head of real estate at Aberdeen Standard Investments, says in the statement.
The unnamed joint venture firm will co-invest and co-manage the properties with Aberdeen Standard Investments and Sumitomo Mitsui Trust Real Estate Investment Management Co, a subsidiary of SuMi Trust.
Aberdeen Standard Investments had around US$643.3 billion of assets under management globally at the end of 2018. SuMi Trust had 57 trillion yen ($527 billion) of total assets as of March 2019.