Global real property development, investment as well as property management company Hines released a press release that they have purchased five multi-family properties in Japan. The properties are located in Tokyo as well as Kyoto and include the 290 units which cover 100,107 square feet.
The transaction was arranged through Hines Asia Property Partners (HAPP) which is the company’s principal combined Asia Pacific core-plus fund, which brings the total number of multi-family rental assets within its portfolio up to 16. The HAPP investment is the second in multi-family properties in Asia Pacific, following its acquisition of 11 multi-family assets in Japan in the year prior. The 11 properties comprised more than 400 units, or 150,694 square feet spread over Tokyo, Nagoya and Fukuoka.
The multi-family rental market is a major part of Japan is a dependable non-discretionary market within the Asia region. It is stabilizers when paired with a core-plus approach according to Chiang Ling Ng, chief investment officer, Asia, at Hines. “It is expected to be a defensive sector during an inflationary cycle and with a positive leveraged yield the new acquisitions will keep adding to our expanding footprint across the region, enabling us to provide a top-quality portfolio for our clients.”
The recent acquisitions reflect the continuing efforts of HAPP’s “living strategy of aggregation” to Japan. HAPP hopes to grow by $1 billion ($1.33 billion) of value of assets through the strategy over 3 to 5 years. The newly acquired properties are managed by the company’s Cavana brand that targets urban dwellers in the major Japanese cities. Cavana concentrates on sustainability efforts and plans to introduce tenant engagement initiatives to help the tenants to reduce their use of water, recycle materials, and decrease the carbon footprint of their properties.
There is a reason why the Japanese multi-family market continues to be an attractive investment option due to its resiliency in income, steady yield, the abundance of investment-grade assets that are available, and attractive returns adjusted for risk, states Jon Tanaka, country head of Japan at Hines. “Our most recent assets are located in central locations throughout Tokyo and Kyoto They are well-connected to the major CBDs and are in line with our approach of focusing on quality acquisitions. We are continuing to secure properties that we expect to provide steady income for HAPP and also highlight the Cavana label as a sign of excellence.”