A Tokyo multifamily real estate investment partnership created by Nuveen Real Estate, Japanese asset manager Kenedix and Dutch real estate investor Bouwinvest, has acquired seven additional properties worth $224m in total.
Announcing the deal, Nuveen Real Estate said following the acquisition of the 428 units, the Tokyo Multifamily Partnership’s (TMP) portfolio now includes 22 properties with a gross asset value of $642m.
Nuveen Real Estate also said, the partnership – which raised $200m at first close in May 2018 – has now completed its second close, taking the total to $284m from Bouwinvest, another institutional investor and Nuveen Real Estate’s parent company – TIAA.
The venture intends to invest up to $1bn into multifamily assets in Japan’s capital city.
Shu Wantanabe, director of capital transactions, Asia at Nuveen Real Estate, said: “We first identified the investment opportunities in the Tokyo multifamily sector in 2017 and formed our partnership with Bouwinvest and Kenedix.
“The sector has provided our investors the opportunity to tap into strong secular fundamentals and growth, adding resilience to their portfolios in a late-cycle market.”
Soushi Ikeda, managing director, head of strategic investment department at Kenedix, said: “There is strong demand among investors in Japan and other countries for long-term core investments.
“Our core fund business, which focuses on assembling strategic investment portfolios by meeting this demand, has posted steady growth.”
Tjarko Edzes, director Asia-Pacific investments at Bouwinvest, said: “Demand for residential properties in Tokyo has been very strong for several years.
”By maintaining the proper balance between properties for single people and families, TMP is able to produce a consistent return due to a high occupancy rate.”