Hines, a world-renowned real estate investment, development and property manager, has made a significant purchase in the Japanese real estate market. Announced in a May 3 press release, Hines Asia Property Partners (HAPP) have acquired five multi-family rental properties located across Tokyo and Kyoto comprising 290 units that span a total of 100,107 sq. ft.
This brings the total number of multi-family rental assets under the HAPP portfolio to 16, following last year’s hefty purchase of 11 multi-family assets across Tokyo, Nagoya and Fukuoka. These assets boasted 400 units or 150,694 sq ft.
Chiang Ling Ng, Chief Investment Officer of Asia at Hines, believes that investing in the multi-family rental sector in Japan is both a practical and wise decision.
“The sector is non-discretionary, contributes as a stabiliser in a blended core-plus strategy, and is expected to be defensive in an inflationary cycle,” said Ng, adding that HAPP purchased the new acquisitions with positive leverage yields that should generate high quality portfolios for investors.
HAPP’s “living aggregation strategy” for Japan, with the goal of US$1 billion ($1.33 billion) in assets over the course of three to five years, has been furthered by these properties, which will operate in accordance with the Cavana brand. This brand has been established to target urban dwellers in major cities, with various sustainability initiatives, tenant engagement schemes and more.
Jon Tanaka, Country Head of Japan at Hines, believes the Japanese multi-family market offers a highly attractive investment strategy. “Our latest acquisitions,” he said, “are centrally located in Tokyo and Kyoto, and sustain our strategy of being selective with these high-quality purchases.”
New condo J’DEN planned to replace JCube at Jurong East MRT Station, expected to be launched in J’Den Condo 2023 with price tag of $2,000-$2,100 psf and connection to amenities such as bus interchange, library, club, and sports centre.
Overall, Hines anticipates the acquisitions to provide stable income returns for HAPP and serve as an example of the Cavana brand’s commitment to quality.
