Developer, property and investment manager Hines recently announced that it has acquired five new multifamily properties in Japan, due to increased demand the firm is seeing across the sector.
Hines’ acquisition of the multifamily properties across Tokyo and Kyoto adds up to over 9,300 sqm and 290 units, with the new acquisitions creating much needed housing for tenants.
Continued investor interest in the sector remains, as the current demand for multifamily housing skyrockets.
“The multifamily rental sector in Japan is a resilient non-discretionary sector in the Asia region and contributes as a stabiliser in a blended core-plus strategy. 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.”Chiang Ling Ng, Chief Investment Officer, Asia, Hines
This deal was made by Hines Asia Property Partners (HAPP) – the firm’s flagship commingled Asia Pacific core plus fund – and takes the total number of multifamily rental schemes in its portfolio to 16.
It builds on the previous 11 acquisitions made by HAPP in 2022 for 14,000 sqm and over 400 units in Tokyo, Nagoya and Fukuoka, which also represented the first multifamily investments for HAPP in Asia Pacific.
“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. 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.”Jon Tanaka, Country Head of Japan, Hines
The five recent acquisitions of the multifamily properties showcase the results of HAPP’s living aggregation strategy for Japan, which aims to scale up to $1bn of asset value in three to five years.
Located at the heart of the popular Japanese cities, the acquired properties are managed under the firm’s Cavana brand, which focuses on sustainability initiatives and plans to implement tenant engagement schemes; encouraging them to conserve water, recycle materials and reduce their carbon footprint.
Further demonstrating Hines’ expansion, their latest Build to Rent scheme, Skypark Valdebebas in Spain, Madrid, opened earlier this year with sustainable infrastructure company ACCIONA.