North American and Japanese investors have backed a Tokyo-focused fund managed by GreenOak Real Estate.
The investment manager’s GreenOak Asia II vehicle is targeting assets in the Tokyo Metropolitan area.
The fund, which closed in February, attracted $655m (€570m) from US dollar and yen-denominated investors, split 60/40.
Sovereign wealth funds and pension funds were among those who committed to the fund, which is investing in assets in need of repositioning, redevelopment, re-leasing or refurbishment.
Most investors had backed GreenOak’s previous Asia vehicle in 2013.
While the latest fund will focus on the office sector – with one Tokyo office asset used to seed the fund – GreenOak could also target other asset classes, according to its adviser, Hodes Weill.
Around 70% of the fund, as reported in October, will be invested in class-B offices, with the remainder invested in a combination of hotels, retail and residential properties.
Up to 10% of the fund’s capital could be invested outside Japan, with South Korea, Hong Kong and Singapore possible locations.
The Texas Permanent School Fund last year approved a $50m allocation to the vehicle.
GreenOak, co-founded by John Carrafiell, last year raised €250m ($266.8m) for a European real estate fund with a focus on Spain.
North American, European and Asian corporate and government pension funds backed the fund.