JAPAN - GE Capital Real Estate and Aberdeen Asset Management have launched a $400m (€282m) co-investment vehicle to invest in residential property in the Japanese capital.
The Tokyo Residential JV will be used to acquire residential investments in the Tokyo multi-family sector over the next two years.
Aberdeen committed to the joint venture on behalf of two Asia-Pacific property funds of funds and a separate account it advises.
It marks the first time Aberdeen's multi-manager business has invested in Asian real estate through a joint venture - until now, it has gained its exposure to the region through third-party funds.
Jon Lekander, global head of indirect investment management, said: "This partnership illustrates Aberdeen's ability to leverage our relationship network in Asia Pacific to tap unique opportunities like club deals and joint ventures."
For GE Capital Real Estate, meanwhile, the partnership marks the latest development in the firm's strategy to open up its global real estate resources to third-party investors.
Grace Chang, general manager for Asia Pacific at GE Capital Real Estate Global Investment Management, said: "Aberdeen is an ideal partner for our investment programme in Tokyo multi-family residential, given its commitment to Asia."
GE Capital Real Estate is targeting studio and one-bedroom apartment properties in Tokyo.
The company said the sector had proven resilient throughout the downturn, providing attractive risk-adjusted returns.
Despite an overall decline in population in Japan, the population of Tokyo continues to grow, making residential investments attractive, with stable occupancy demand.
Jonathan Kern, president of GE Capital Real Estate Global Investment Management, said: "Tokyo residential represents an important segment for us and our clients. Given our extensive experience in the sector and domain knowledge, we're confident this is a meaningful opportunity."
Puay Ju Kang, Aberdeen's head of property for Asia Pacific, said: "We are very pleased to find in GE a partner and manager with a wealth of investment experience in the region and one who shares our exacting investment approach."