This latest transaction follows the acquisition in November 2019 of a EUR 1.1 billion multi-family residential portfolio of 82 assets spread across Japan. Both deals underline the firm’s strategy of acquiring core income producing assets for long-term hold.
“This is an excellent addition to our existing multi-family residential portfolio in Japan, a sought-after asset class offering one of the highest stabilized yield spreads in the region. Multi-family assets in Japan’s ‘big four‘ cities, particularly Tokyo, continue to remain attractive with strong urbanization trends coupled with limited net supply,” said Rushabh Desai, Asia Pacific CEO of Allianz Real Estate. “Our existing multi-family portfolio in Japan is performing strongly with over 96% occupancy and rental growth as per our business plan.”
Allianz Real Estate‘s assets under management in the Asia-Pacific region amounted to EUR 5.5 billion as at the end of 2019. The Asia-Pacific business is headquartered in Singapore and recently set up an office in Tokyo having hired a senior asset management professional to be based locally.