AXA Investment Managers - Real Assets has acquired a residential tower in Japan’s third-largest city, Nagoya, marking its 11th investment in the country.
The new acquisition also pushes the firm’s total investments in Japanese residential assets on behalf of clients to more than ¥10 billion ($93 million). This compares to the total residential asset portfolio of €15 billion ($16.7 billion) invested across 11 countries.
The Nagoya-based residential asset, named S-FORT Sanno, is an 11-story building with 230 rental units totaling 8,778 square meters.
«The transaction is consistent with AXA IM - Real Assets’ wider strategy, on behalf of clients, to invest into residential asset classes which it believes are supported by strong demographic drivers,» the firm said in a release.
Nagoya Tailwinds
AXA IM said Nagoya’s residential market lacked affordable rent for families while demand rose in line with economic growth and infrastructure investments.
«Nagoya’s growing residential population and continuing investment in improving what is an already strong infrastructure offering underpins this latest off-market acquisition,» said Laurent Jacquemin, head of Asia Pacific at AXA IM - Real Assets.
«Furthermore, this latest addition to our Japanese residential portfolio offers strong income return potential and limited future capex, supporting our goal of long-term value creation on behalf of our clients.»
