Allianz Real Estate has expanded its residential portfolio in Japan with the acquisition of 鈧�110m worth of multi-family assets.
The acquisition of the 11 newly-built assets in Tokyo 23 ward, on behalf of the Allianz group, brings its exposure to Japan鈥檚 residential-for-rent sector to more than 鈧�1.2bn.
鈥淩esidential-for-rent is turning out to be one of the most resilient (property) sector in Japan post-COVID-19,鈥� Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate, told 麻豆映画 Real Assets.
He said that the Allianz existing portfolio in Japan had enjoyed 鈥渞ental growth in line with market鈥� and high occupancy.
When Allianz bought the portfolio of 82 assets across Japan from Blackstone in November last year for 鈧�1.1bn, the occupancy level was around 94-95%.
鈥淒espite the volatile macro-economic environment, we have increased occupancy (to 96%) and returns are in line with our business plan,鈥� Desai said.
鈥淭he investment has validated our view that residential-for-rent is a resilient asset class.鈥�
He said that Japanese tenants are likely deferring moving decisions as well as decisions to buy condominiums and that this had benefitted the multifamily market.
Japan鈥檚 residential-for-rent market is underpinned by the theme of urbanisation, with the Japanese continuing to be drawn to the country鈥檚 big four cities, he added.
Desai said the latest portfolio had a stabilised, well-diversified tenant base.
鈥淲e look at opportunities on a risk-adjusted basis鈥� he said. 鈥淭his investment offers attractive long term income returns, and we have ensured that the investment is protected from downside risks, if any.鈥�
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