Allianz Real Estate continues to increase exposure to its high conviction theme of investing in Japanese multi-family

Tokyo / Singapore / Munich, 03/05/2021

 

Allianz Real Estate, on behalf of Allianz group of companies and a like-minded institutional investor, has entered into a sale & purchase agreement to acquire a portfolio of prime multi-family assets in Tokyo for approximately EUR 75 million. The portfolio comprises of 12 newly built assets with 256 units offering 7,250 sqm net rentable area. All assets are located in Tokyo 23 wards and are on average six minutes from the subway station.
 

Rushabh Desai, CEO Allianz Real Estate Asia Pacific

Rushabh Desai, CEO Allianz Real Estate Asia Pacific

The assets will be acquired upon completion and Allianz Real Estate intends to lease-up and stabilize the assets for long term hold, in line with the firm’s focus on diversified core and manage-to-core strategies.

This latest transaction follows a series of Japan multi-family transactions by Allianz Real Estate over the last two years. In November 2019, the firm acquired a EUR 1.1 billion multi-family residential portfolio spread across Japan. In 2020, the firm acquired two portfolios of prime, multi-family residential assets in Tokyo for EUR 0.2 billion. Including this transaction, Allianz Real Estate’s multi-family portfolio in Japan now comprises over 5,500 units across 120 assets and EUR 1.5 billion in gross asset value. These investments underline the firm’s strategy of growing exposure to multi-family assets in Japan, a sought-after asset class offering long term stabilized yields and supported by strong urbanization trends with limited net-supply.

“Our existing multi-family portfolio in Japan has performed well despite the COVID-19 pandemic and this has validated our conviction about the resilience of this asset class. With the recruitment of new senior hires in Japan, our sourcing and asset management capabilities have been enhanced. The lease-up and stabilize strategy is an example of the expansion of our capabilities”, said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate. “We would like to continue to expand our core and manage-to-core portfolios of multi-family assets in Japan. ESG is at the forefront of what we do. We have developed a structured framework to achieve our goal of reducing the greenhouse gas emissions of our portfolio to net zero by 2050. Specifically, for our multi-family assets in Japan we are also looking to increase the use of renewable energy, enhance waste management procedures and incentivise tenants to sign up green leases.”

Allianz Real Estate‘s assets under management in the Asia-Pacific region amounted to EUR 6.6 billion as at the end of 2020. The Asia-Pacific business is headquartered in Singapore with local offices in Tokyo and Shanghai.

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Claire Fraser
Claire Fraser
Global Head of Marketing & Communications