Gaw Capital eyes more Japan property deals amid high expectations for TSMC’s chip factories
- Gaw already manages US$3.8 billion of property assets in Japan and has begun a search on the western island of Kyushu
- TSMC is building an US$8 billion fabrication plant in Kumamoto prefecture in collaboration with Sony, to be completed later this decade
“We are looking in that area, obviously we believe that with TSMC, it would change the market a lot,” Isabella Lo, Gaw’s managing director and head of Japan investments, said in an interview Wednesday. Gaw, which already manages US$3.8 billion of property assets in Japan, has just begun its search in Kyushu – a region where it hasn’t made acquisitions before, Lo said, adding that she would be interested in developing a logistics property and buying residential real estate in the area.
Kyushu is more known in Japan for its mountains, beaches and hot springs than the commercial activity that’s typically drawn real estate investors to areas around Tokyo and Osaka. The opening of an advanced chip factory could bring investment to the region, and the Japanese government is providing subsidies for the project.
Active in Japan
Gaw, which manages about US$35.7 billion of real estate assets globally, has been particularly active in Japan in the past year, attracted by the country’s weak currency and low interest rates. Lo said in August the fund planned to invest about US$3.5 billion to US$4 billion in Japan by mid-2024.