Allianz Real Estate Acquires Residential Assets in Japan

Allianz SE

JAPANAllianz Real Estate, the dedicated real estate investment manager of the Allianz Group, has acquired a portfolio of prime multi-family residential assets in Tokyo for approximately EUR110 million (US$122 million).

The portfolio comprises 11 newly built assets with 275 units offering 8,400 sqm net rentable area. All assets are located in Tokyo 23 wards and are on an average within six minutes of a subway station.

Allianz Real Estate said the portfolio is stabilized and has a well-diversified tenant base.

This latest transaction follows the acquisition in November 2019 of a EUR1.1 billion multi-family residential portfolio of 82 assets spread across Japan. Both deals underline the firm’s strategy of acquiring core income producing assets for long-term hold.

“This is an excellent addition to our existing multi-family residential portfolio in Japan, a sought-after asset class offering one of the highest stabilized yield spreads in the region. Multi-family assets in Japan’s ‘big four‘ cities, particularly Tokyo, continue to remain attractive with strong urbanization trends coupled with limited net supply,” said Rushabh Desai, Asia Pacific CEO of Allianz Real Estate.

“Our existing multi-family portfolio in Japan is performing strongly with over 96% occupancy and rental growth as per our business plan.”

Allianz Real Estate‘s assets under management in the Asia-Pacific region amounted to EUR5.5 billion as at the end of 2019. The Asia-Pacific business is headquartered in Singapore and recently set up an office in Tokyo having hired a senior asset management professional to be based locally.

The firm has grown to become the world’s largest investor in real estate. The firm develops and executes worldwide tailored portfolio and investment strategies on behalf of a range of global liability-driven investors, including Allianz companies, creating value for clients through direct as well as indirect investments and real estate loans.

The operational management of investments and assets is performed out of 21 offices in key gateway cities across 5 regions (West Europe, North & Central Europe, Switzerland, USA, and Asia Pacific). –