German real estate investment firm Patrizia SE says it has teamed up with an Asian asset owner that’s a “major” global institutional investor to form a 150 billion yen (US$1.07 billion) fund that will invest in Japan’s residential property market.
The firm expects the fund to help it reach its target of 300 billion yen of Japanese investments by 2027. It did not disclose the identity of the Asian investor or the ownership structure of the fund.
“The dedicated fund will target residential assets in Tokyo, the world’s largest metropolitan area, as well as other major cities and metropolitan areas across Japan,” Patrizia says in a statement on November 15. “The investment strategy will focus on core plus and value-add opportunities in the multi-family sector, while an active asset management strategy on the ground will drive value through the renovation of units.”
Core plus strategies are those that focus on high-quality and well-occupied properties. Value-add strategies refer to investments that have the potential to produce significant cash flow once the value is added.
According to Patrizia Chief Executive Officer Wolfgang Egger, Japan’s large real estate sector, political stability and strong economy make it an “incredibly attractive market”.
“Our partnership with one of the world’s major institutional investors is a step change in our Asia Pacific growth story and Patrizia’s international investment activities as a truly global real assets player,” he says in the statement.
Augsburg-based Patrizia manages 57 billion euros ($59.05 billion) of assets globally.
