Allianz Real Estate with Ivanhoé Cambridge to Invest In Japan Residential Property
Allianz Real Estate, one of the world’s largest real estate investment managers, announced today that it has established a new investment platform, in partnership with Ivanhoé Cambridge and other investors, to build a diversified portfolio of multi-family residential assets across top tier cities in Japan. The platform, Allianz Real Estate Asia-Pacific Japan Multi-Family Fund I (‘AREAP JMF I’ or ‘Venture’), is a Singapore-domiciled, closed-end fund. Fully invested, the platform will have an investment capacity of approximately USD 2 billion in Gross Asset Value. Equity commitments for the Venture are currently planned to total USD 750 million within a few weeks, but depending on the pace of capital deployment, the Venture may increase equity to USD 1 billion. For the first close, Ivanhoé Cambridge, the real estate subsidiary of Caisse de Dépôt et placement du Québec, and Allianz group companies, each committed USD 250 million equity. Allianz Real Estate will serve as the Investment Manager and General Partner of the platform. The strategy for AREAP JMF I is to acquire primarily newly completed, well-located assets in Japan’s four major cities, Tokyo, Osaka, Nagoya, and Fukuoka, and lease-up and stabilize the assets for long-term hold. The Venture will have a strong ESG focus, targeting use of renewable energy, implementation of green leases, green certification of assets, raising portfolio energy efficiency standards and community initiatives. “The Japan multi-family residential sector has displayed resilience throughout the COVID-19 pandemic and continues to be a high-conviction asset class, offering stable cash flows and attractive stabilized yield spreads to investors,” said Rushabh Desai, Asia Pacific CEO of Allianz Real Estate. “We are very excited to establish this partnership with Ivanhoé Cambridge. The combined expertise will place the Venture in good stead to build a diversified portfolio of high-quality Japanese residential assets with strong ESG credentials.” “This Venture is an excellent opportunity for us to launch our new investment strategy of Japan multi-family, an attractive sector underscored by robust urbanization trends and limited net supply. This investment will serve to further grow and diversify our portfolio in Japan and Asia-Pacific,” said George Agethen, Senior Vice-President at Ivanhoé Cambridge. “Allianz Real Estate is a like-minded partner, and we are happy to extend our collaboration with them to Asia-Pacific.”
Tags : INTERNATIONAL Renewable Energy Ivanhoé Cambridge Allianz Real Estate Japan Residential Property largest real estate investment managers multi-family residential assets AREAP JMF I ESG focus green leases implementation