Savills Investment Management has made a further JPY24bn (€182.7m) worth of acquisitions for its Japanese residential fund.
The manager said its Japan Residential Fund II (JRFII), which launched in November 2020, has now acquired or committed to acquire 27 properties, 24 of which are located in Greater Tokyo. In total, Savills IM’s Japan residential fund has now secured JPY43bn of assets.
Savills IM said JRFII’s latest acquisitions closed in June and comprise 10 assets located in residential submarkets of central and outer Tokyo, central Osaka and central Nagoya.
Tadaaki Kurozumi, co-head of Savills IM Japan, said: “The size and liquidity of the Tokyo residential market means it is very resilient to external shocks, as has been proven during the global financial crisis and more recently during COVID-19.
“However, it is not easy to acquire well-priced assets without the ability to source off-market transactions. Our experienced team has been investing in Japan residential for more than 20 years and has the contacts and execution capabilities required to source high-quality assets at attractive prices.”
Tom Silecchia, co-head of Savills IM Japan, said: “JRFII will selectively invest outside Tokyo, but we will continue to focus on the capital, where we can acquire the best assets at compelling yields. We have a strong pipeline of high-quality acquisitions and the capacity to considerably increase the size of the fund without compromising quality.”
JRFII is Savills IM’s first open-ended core fund in Asia. The fund is backed by an unnamed global multi-manager acting as cornerstone investor.
Savills IM said the fund, which raised an initial $200m at launch, recently received an additional $40m capital injection from its cornerstone investor and currently has the capacity to take on new equity partners.
The fund’s deal pipeline includes JPY13.8bn of immediately actionable stock, with potential to bring the total gross asset value to more than JPY71bn, the manager said.
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