(TOKYO) – Hines, the global real estate investment, development, and property manager, today announced that it has acquired five new multifamily properties in Japan, due to increased demand the firm is seeing across the sector. Totaling over 9,300 square meters and 290 units, the new acquisitions will add much needed capacity for tenants seeking quality rental options in key cities.
This deal was made by Hines Asia Property Partners (“HAPP” or the “Fund”), the firm’s flagship commingled Asia Pacific core plus fund, and takes the total number of multifamily rental assets in its portfolio to 16. It builds on the previous 11 acquisitions made by HAPP in 2022 for 14,000 square meters and more than 400 units in Tokyo, Nagoya and Fukuoka, which also represented the first multi-family investments for HAPP in Asia Pacific.
“The multifamily rental sector in Japan is a resilient non-discretionary sector in the Asia region and contributes as a stabilizer in a blended core-plus strategy,” said Chiang Ling Ng, chief investment officer, Asia at Hines. “It is anticipated to be defensive in an inflationary cycle and with positive leveraged yields, these new acquisitions should continue to add to our growing footprint in the region, allowing us to deliver a high-quality portfolio to our investors.”
The latest acquisitions are the continued effort of HAPP’s living aggregation strategy for Japan, which aims to scale up to USD 1 billion of asset value in three to five years. Targeting urban dwellers in major Japanese cities, the properties are managed under the firm’s Cavana brand which focuses on sustainability initiatives and plans to implement tenant engagement schemes to encourage them to conserve water, recycle materials and reduce their carbon footprint.
“The Japan multifamily market remains an attractive investment strategy due to its resiliency of income, stable yield, large number of available investable assets and attractive risk-adjusted returns,” said Jon Tanaka, country head of Japan at Hines. “Our latest assets are in central locations across Tokyo and Kyoto, have good accessibility to the main CBDs and sustain our strategy of being extremely selective with high quality acquisitions. We continue securing properties which we anticipate will produce stable income returns for HAPP and highlight our Cavana brand as a symbol of quality.”
Hines is a global real estate investment, development and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 30 countries. We manage nearly $96B1 in high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 685 properties totaling nearly 216 million square feet globally. We are committed to a net zero carbon target by 2040 without buying offsets. To learn more about Hines, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization and RIA AUM as of December 31, 2022.