Savills Investment Management’s €207m core-plus pan-Asian fund has made its first investments in the Japanese office and residential sectors with the acquisition of a Yokohama office and a 13-asset residential portfolio.
The international real estate investment manager said it has acquired a 5,500sqm multi-tenant building in Greater Tokyo close to Yokohama Station and the 13-asset residential portfolio located across Greater Tokyo and central Fukuoka.
The residential portfolio, acquired from separate vendors for an undisclosed amount, comprises seven multifamily buildings and six master-leased dormitories.
As previously reported, Savills IM and Greenpool Capital acquired Forest Lakes Shopping Centre neighbourhood shopping centre in Perth, Western Australia from DRH Property Investments for A$85.5m (€55m).
Savills IM has now disclosed that it invested €54m on behalf of the pan-Asian fund to buy 75% of the Forest Lakes mall. Greenpool Capital will hold the remaining 25% stake in the mall which has 97% occupancy rate.
Forest Lakes is the second retail asset for the fund following the acquisition of a neighbourhood shopping centre in Toowoomba, Australia.
The core-plus pan-Asian fund, launched in December 2020, currently has a portfolio of 17 properties in Australia and Japan.
Greg Lapham, the head of Australia, at Savills IM, said: “The real estate market in the Asia-Pacific region offers investors strong economic growth with diversification of investment opportunities. Due to its transparency, Australia is an important and attractive destination for real estate investments and therefore also plays an important role in our flagship pan-Asian fund.”
The residential-related purchases in Japan contribute to the diversification of the fund portfolio by country and sector and offer a high cash-on-cash income from day one, Lapham said.
“We believe that brick-and-mortar shops focused on non-discretionary spend will continue to be of central importance for the grocery trade as well as for daily goods and are therefore pleased to have secured another prime property in this highly competitive segment for the fund,” said Lapham.
To read the latest edition of the latest IPE Real Assets magazine click here.