AXA IM Alts has invested €423m (£365m) buying two portfolios of Japanese residential real estate.
The group has bought a 29-asset multi-family residential portfolio and a portfolio of four student accommodation assets. Both acquisitions have been made on behalf of clients through AXA IM Alts.
The multi-family portfolio comprises a total of 1,482, mainly studio flats, which are located in high density neighbourhoods within Greater Tokyo and Osaka.
The student accommodation portfolio comprises four newly constructed properties totalling 539 studio apartments. It is operated by National Students Information Centre, one of the largest student housing operators in Japan. The blocks are located in heavily populated neighbourhoods within Greater Tokyo, close to 11 local universities.
These deals mark AXA IM Alts’ second and third acquisitions in Japan this year, and form part of its wider long-term strategy to invest into residential asset classes.
Laurent Jacquemin, head of Asia-Pacific at AXA IM Alts, said: “These transactions extend our residential footprint in two of Japan’s most densely populated cities, where demand for high-quality residential units significantly exceeds current supply.
“Against a volatile macroeconomic backdrop, the highly defensive build-to-rent and student accommodation sectors are two of AXA IM Alts strong conviction calls, reflecting their favourable demographic and societal drivers and attractive income and capital growth characteristics. Japan, and the Apac region as a whole, remains a key focus for the business.”
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