Foreign funds’ interest in Japan real estate keeps growing

Foreign funds’ interest in Japan continued with AXA Investment Managers – Real Assets (AXA) acquiring three residential assets in the country, kicking off its plan to build a.€150 million (¥20 billion) portfolio of residential, retail and office assets on behalf of a client there.

The real estate portfolio and asset manager said the acquisition was on behalf of an AXA Insurance company.

The company said all three assets are in line with its strategy to acquire well-maintained assets in core locations throughout Japan, positioning to benefit from a growing economy with an increasing population.

They include two assets in Sapporo, the largest city in Hokkaido Island, and the third one in Sendai, the 11th largest city in Japan.

AXA did not reveal the investment amount. But the acquisitions marked the commencement of the first phase of a new Japanese investment strategy which will initially look to build a €150 million portfolio there,

Frank Khoo, Global Head of Asia, Real Assets, said: “Japan continues to be a key market for AXA and we are fully committed to expanding our exposure, presence and expertise here.”

Khoo said the company feels that Japan is still one of the most attractive developed markets in Asia.

Foreign investors have shown growing interest in Japan over the past few years, especially in commercial properties.

The eye-catching news is Norges Bank Investment Management, the world’s largest sovereign wealth fund. The fund said it would increase the real estate held in its assets.