QIP acquires four multifamily schemes in Japan

Q Investment Partners has recently announced the closure of its Japan multifamily housing fund in a joint venture with Alyssa Partners.

One of the multifamily schemes in Japan that has been acquired by QIP, in a joint venture with Alyssa Partners | BTR News
One of the multifamily schemes in Japan that has been acquired by QIP, in a joint venture with Alyssa Partners.

Singapore-based private equity firm Q Investment Partners (QIP) has recently announced the closure of its Japan multifamily housing (MFH) fund in a joint venture with investment manager Alyssa Partners.

The transaction closed with c.US$50m, with the recent acquisition of a multifamily residential asset in Kiba, Central Tokyo, marking the fourth and final asset in the fund’s portfolio.

The newly acquired scheme in Kiba consists of 42 residential units and is located within a ten-minute walking distance to Kiba station, providing access to Tokyo’s main financial and commercial district Otemachi in under 20 minutes.

QIP’s strategic focus on key cities in Japan, including Osaka, Nagoya and Tokyo, has proven successful over the past year.

“We are delighted to announce the full deployment of the fund and the acquisition of our fourth asset in Tokyo. QIP’s multifamily housing fund is a vehicle that has successfully provided access to the residential market in Japan, which continues to grow in popularity and attractiveness.

“We are extremely grateful to our capital partners for their shared conviction in the value of this portfolio and are excited to extend our commitment to the Japanese market, with plans to create a local team in Japan as part of executing the strategy of our second fund towards the tail end of 2023.

“Key macro- and microeconomic factors mean that the Japanese residential living sector, and in particular the multifamily asset class, continues to be favoured by institutional capital, with numerous notable deals having taken place in Q1 2023. It’s an exciting place to be. QIP remains committed to the Japanese market and are looking toward a second Japan-focused fund later this year, signifying our continued commitment to providing innovative investment opportunities in high-demand markets.”

Peter Young, CEO, Q Investment Partners

In addition to the Kiba asset, the fund also includes 89-unit Luxe Shin Osaka, 62-unit Porta Nigra Osu, and 56-unit Porta Nigra Chikusa.

The demand for residential schemes in Japan resulted in a portfolio occupancy rate of 95% for QIP, which showcases the success of residential Build to Rent in the country.

Japan’s real estate market has shown a notable recovery over the past year, with Tokyo experiencing an upward trend in rent prices while maintaining average occupancy rates above 96%.

“QIP’s successful closure of the multifamily fund in Japan is another strong indication of the strength and continued robustness of the Japan Residential Living Sector. Their strategic focus on the key cities in Japan, not just Central Tokyo, has allowed them to capitalise on the strong demand for quality accommodation, and fully maximise the value of its multifamily residential assets. Alyssa Partners is truly pleased with the QIP partnership and look forward to collaborating further with their future plans.”

Chedli Boujellabia, Managing Partner and CEO, Alyssa Partners

Inbound investment into Japan has also seen significant growth, reaching JPY1.3tn in 2022; a 12% increase from the previous year.

The country continues to see positive net population growth, as the number of households increased by 12,000.

Launched in June 2022, the fund was established in response to the Japanese residential market’s predictable recurring income and low borrowing costs.