Nuveen Real Estate’s Asia Pacific Cities fund has invested $140m (€126m) to buy a portfolio of multifamily properties in Japan.
The manager said the ten residential properties, located across Tokyo and Osaka, comprise more than 600 individual units.
Louise Kavanagh, managing director Asia Pacific for Nuveen Real Estate, said: “The latest acquisition adds to our growing portfolio of properties in Japan, whilst concurrently providing asset-specific diversification following the purchase of Odawara Logistics in Greater Tokyo in August last year.
“Demographic and lifestyle shifts, such as inward city migration and increasingly smaller household sizes will continue to support demand for multifamily residential apartments within close proximity and accessibility to key transport connections, with these assets particularly appealing to middle-market tenants seeking a more urban lifestyle.”
Harry Tan, head of APAC research for Nuveen Real Estate, said: “Japan is a key target country of investment for our Asia Pacific Cities vehicle. At this point of the cycle, it is important to invest into a robust city economy with secularly strong market fundamentals to future proof our investments.
“Tokyo multifamily fits in smartly into this strategy: the world’s biggest metropolitan economy (by GDP and population now and in 2030), favourable demographics (both population and household growth) and a very vibrant and diversified business sector.”
The open-ended Asia Pacific Cities fund already owns an office asset in Sydney and two logistics facilities in Greater Tokyo and Seoul. The latest acquisition lifts the portfolio’s managed assets to over $500m.
Kavanagh said: ” Having raised over $600m since launch in November 2018, we will be looking to deploy in selective markets where income is still a key driver of rental growth and occupier demand fundamentals remain positive.”