Allianz Real Estate, one of the world’s largest real estate investment managers, has entered into an agreement to acquire a portfolio of prime multi-family residential assets in Tokyo for approximately USD 90 million, on behalf of the Allianz Real Estate Asia-Pacific Japan Multi-Family Fund I (‘AREAP JMF I’).
The portfolio consists of 12 newly built assets with more than 280 units in total, offering over 7,500 sqm net rentable area. All properties are well-located in Tokyo 23 Wards and are on average six minutes from the nearest train station. Additionally, all assets will feature key on-site amenities. The assets will be acquired upon completion and, in line with the strategy of AREAP JMF I, Allianz Real Estate intends to lease-up and stabilize the assets for long-term hold.
Established in December 2021, AREAP JMF I is a closed-end fund primarily focused on investing in newly completed residential assets in Japan’s four major cities of Tokyo, Osaka, Nagoya and Fukuoka. The fund currently has total equity commitment of USD 750 million, including USD 250 million each from Ivanhoé Cambridge and Allianz Group companies. Fully invested, the fund will have an investment capacity of approximately USD 2 billion in Gross Asset Value.
Daisuke Noguchi, Head of Japan, Allianz Real Estate Asia-Pacific, 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. 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.”
Laurent Fischler, Head of Investments, Asia-Pacific for Ivanhoé Cambridge, added: “We are delighted with this first acquisition of a portfolio that fully meets the Fund’s selection criteria and reinforces our 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.”