Global real property development, investment as well as property management company Hines has announced via a press release that it had purchased five multi-family properties in Japan. The properties are situated between Tokyo in both Kyoto and consist of the 290 units which cover 100,107 sq feet.
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The transaction was arranged via Hines Asia Property Partners (HAPP) HAPP, the firm’s principal mutually – a commingled Asia Pacific core-plus fund, and brings the total amount of multi-family rental assets within the portfolio to 16. The HAPP investment is the second into multi-family assets across Asia Pacific, following its acquisition of 11 multi-family assets in Japan in 2011. The 11 assets included more than 400 units, or 150,694 square feet in Tokyo, Nagoya and Fukuoka.
The multi-family rental industry within Japan is a dependable non-discretionary market within the Asia region, and is stabilizers in a mixed core-plus strategy according to Chiang Ling Ng, chief investment officer, Asia, at Hines. “It is expected to be a defensive sector during an inflationary cycle and also with positive leveraged yields the new acquisitions will be able to continue to expand our expanding footprint in the region, which will allow us to offer a quality portfolio for our clients.”
The latest acquisitions are the continuing efforts of HAPP’s “living strategy of aggregation” that is aimed at Japan. HAPP is looking to increase by $1 billion ($1.33 billion) of value of assets through the strategy over the next three or five years. The newly acquired properties are managed by the company’s Cavana brand, which targets urban dwellers in the major Japanese cities. Cavana concentrates on sustainability efforts and plans to introduce tenant engagement programs to motivate the tenants to conserve water, reuse materials, and reduce the carbon footprint of their properties.
There is a reason why the Japanese multi-family market continues to be an attractive investment choice because of its resilience to income, steady yield, an abundance of investable assets available as well as attractive risk-adjusted returns states Jon Tanaka, country head of Japan at Hines. “Our new assets are situated in central locations throughout Tokyo and Kyoto and are easily accessible to the major CBDs and continue to follow our policy of being very selective in our the highest-quality purchases. We are continuing to secure properties that we expect to provide steady income for HAPP and also highlight the Cavana branding as a sign of high-quality.”