Allianz Real Estate is investing €75m to buy a portfolio of 12 newly-built multi-family in Japan.

The manager said it has agreed to buy the 256 units in Tokyo 23 wards upon completion on behalf of Allianz group of companies and an institutional investor.

Allianz Real Estate said it intends to lease-up and stabilise the assets for long term hold.

This latest transaction follows a number of Japan multi-family transactions by Allianz Real Estate over the last two years.

Including this transaction, Allianz Real Estate’s multi-family portfolio in Japan now comprises over 5,500 units across 120 assets and €1.5bn in gross asset value.

In the Asia-Pacific region, Allianz Real Estate manages €6.6bn worth of assets.

Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate, said the firm’s existing multi-family portfolio in Japan has performed well despite the COVID-19 pandemic and this has validated the company’s conviction about the resilience of this asset class.

Desai said: “We would like to continue to expand our core and manage-to-core portfolios of multi-family assets in Japan. ESG is at the forefront of what we do. We have developed a structured framework to achieve our goal of reducing the greenhouse gas emissions of our portfolio to net-zero by 2050.

“Specifically, for our multi-family assets in Japan we are also looking to increase the use of renewable energy, enhance waste management procedures and incentivise tenants to sign up green leases.”

To read the digital edition of the latest IPE Real Assets magazine click here