Hines acquires five more multi-family properties in Japan
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Hines Asia Property Partners (HAPP), the firm’s flagship commingled Asia Pacific core-plus fund, announced on May 3 that it has acquired five new multi-family properties in Japan. Comprising 290 units across Tokyo and Kyoto spanning a total of 100,107 sq ft, this takes the total number of multi-family rental assets in its portfolio to 16.
The Japanese multi-family market continues to be an attractive investment strategy due to its resilience of income, stable yield, vast number of available investable assets, and attractive risk-adjusted returns.
Chiang Ling Ng, chief investment officer, Asia, at Hines states that “It is anticipated to be defensive in an inflationary cycle, and with positive leveraged yields, these new acquisitions should continue to add to our growing footprint in the region, allowing us to deliver a high-quality portfolio to our investors.”
The acquisitions are a part of HAPP’s “living aggregation strategy” for Japan, to scale up by US$1 billion ($1.33 billion) of asset value through the strategy in three to five years. Jon Tanaka, country head of Japan at Hines says that “Our latest assets are in central locations across Tokyo and Kyoto, have good accessibility to the main CBDs and sustain our strategy of being extremely selective with high-quality acquisitions. We continue securing properties which we anticipate will produce stable income returns for HAPP and highlight our Cavana brand as a symbol of quality.”
The acquired properties are managed under the firm’s Cavana brand targeting urban dwellers in major Japanese cities. Cavana focuses on sustainability initiatives and plans to implement tenant engagement schemes to encourage them to conserve water, recycle materials and reduce their carbon footprint.
HAPP’s goal to establish a high-quality portfolio of investable properties in Japan is one that continues to prove successful. By tactfully blending resilience and innovation, Hines is well-positioned to further aid in the growth of the Japanese real estate market.