Patrizia has acquired a prime residential portfolio mostly located in Tokyo on behalf of an unnamed global institutional investor.
The off-market deal expands Patrizia’s footprint in what the real assets manager describes as “one of Asia’s most resilient urban markets”.
This latest transaction comprises a portfolio of 14 residential assets, including approximately 800 apartment units and five retail units, predominantly located in Tokyo’s Central 23 Wards, with one asset situated in Greater Tokyo. The buildings, which are around three years old, have an occupancy rate above 97%, providing “strong income stability and immediate cash flow”, Patrizia said.
The manager said that this acquisition is aligned with the fund’s core-plus strategy, which targets residential assets in major urban centres that offer both income stability and potential for value enhancement.
Tokyo’s Central 23 Wards remain “highly attractive due to consistent population inflows, and existing rental levels across the portfolio are around 10% below market rents”, meaning there is “a clear opportunity to grow income through active asset management and rental reversion over time”, it added.
Masami Takizawa, representative director and head of Japan at Patrizia, said: “This acquisition is a significant step forward for our Japan business and a clear reflection of our confidence in Tokyo’s residential market. The portfolio aligns perfectly with our core-plus/value-add strategy and benefits from the structural tailwinds driving demand in Japan’s urban centres.”
“Looking ahead, we are actively seeking the next opportunity to acquire high-quality assets in key urban locations across Japan where we can leverage our local expertise to drive value through asset optimisation and proactive management.
“In addition to the living sector, we are now committed to diversifying and accelerating our investments in value-add commercial real estate across Japan, capitalising on market opportunities beyond residential.”
Patrizia bolsters Japan investment estate team
Patrizia recently strengthened its team in Japan with the appointment of Yutaka Yukizawa as head of transactions, Japan, a senior leadership role responsible for directing the firm’s investment strategy in the country.
Patrizia said Yutaka brings nearly three decades of real estate experience, having held positions at Nomura Real Estate Development, Morgan Stanley Securities Japan and PGIM Real Estate Japan, and will play a central role in driving the manager’s growth in Japan.
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AloJapan.com