Sumitomo Mitsui Trust Bank, a trust bank in Japan, and Aberdeen Standard Investments, a global asset manager, announced a joint venture that will invest in residential real estate in Japan and other mature markets across Asia Pacific.
In Japan Sumitomo Mitsui Trust Bank (SuMi TRUST) has a strong presence, significant real estate investment capability, robust nationwide brokerage network and unique access to domestic deal opportunities. Combining this with Aberdeen Standard Investment's (ASI) global distribution platform and extensive Asia Pacific real estate fund management and investment expertise, the joint venture aims to deliver a compelling Asia Pacific real estate strategy for investors, the firms said in a media release on Tuesday.
Through co-investment and co-management by ASI and SuMi TRUST’s subsidiary Sumitomo Mitsui Trust Real Estate Investment Management (SuMi TREIM), the joint venture will target investments in residential assets such as multi-family, senior housing, student housing and corporate housing in mature markets in the Asia Pacific region, primarily focusing on Japan.
Trend Towards Urbanization
Adopting a value-added investment strategy, it aims to enhance capital and income through acquiring newly constructed properties on a forward commitment basis, as well as older residential properties which have the potential to be renovated, repositioned or converted.
A continued trend towards urbanization in Japan, especially the largest cities like Tokyo and Osaka provides the structural underpinning to the joint venture’s strategy, bolstered by significant rental and yield gaps between new and older buildings. Similar trends amongst the Asia Pacific region’s largest cities will support its residential real estate investments beyond Japan.
