Insurer Anbang puts $3bn Japanese apartments portfolio up for sale

The single-largest property portfolio yet to transact in Japan, representing multifamily assets valued at around US$3bn (€2.7bn), has come to market.

Industry sources told IPE Real Assets that the portfolio belongs to the Chinese insurer, Anbang Insurance, which bought the assets from Blackstone in January 2017 for US$2.3bn.

The portfolio consists of more than 200 apartment buildings, mostly 10-storey blocks, leased to young professionals in Osaka and Tokyo.

It is the second large portfolio currently on the Japanese market. Blackstone is selling its portfolio of residential apartments, with an asking price of around US$1.5bn.

Anbang Insurance is among many highly-geared Chinese groups being forced to dispose of assets worth billions of dollars in key markets, such as the US, to repay debt.

The Chinese government took control of Anbang in February last year as part of a sweeping campaign to reduce financial risk.

Industry sources said Japan’s multifamily sector had become very attractive to investors seeking stable rental incomes in a low-growth, low-interest-rate environment.

“People are looking to sell now because the accommodation market is in strong demand in the lead-up to next year’s summer Olympics in Tokyo,” a source told IPE Real Assets.

“In addition, the government is planning to lift the value-added tax from 8% to 10%, and the impact of the higher tax will be economic uncertainty,” the source said.

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  • Osaka, Japan

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