The acquisition of assets follows its November 2019 purchase of a portfolio of 82 multi-family residential assets located across Japan for $1.21 billion.
Allianz Real Estate, the real estate manager within Munich-based financial services company Allianz, has agreed to purchase a portfolio of prime multi-family residential assets in Tokyo for €110 million ($121 million), as part of its strategy of acquiring core income-producing assets for long-term hold, it announced in a press release on Friday.
The portfolio comprises 11 newly built assets with 275 units in the Tokyo 23 wards, with 8,400 square meters of net rentable area. They are, on average, located within six minutes of a subway station.
Performing Strongly
According to Rushabh Desai, Asia Pacific CEO of Allianz Real Estate, the firm's multi-family portfolio in Japan is «performing strongly,» with over 96 percent occupancy and rental growth as per its business plan.
He said the asset class offers one of the highest stabilized yield spreads in the region, and such properties in Japan's «Big 4» cities are attractive due to strong urbanization trends and limited net supply.
Strong Asian Business
As of end-2019, Allianz RE's assets under management in Asia reached €5.5 billion, up 83 percent on-year, with global AUM at €73.6 billion. The firm's largest deals in 2019 took place in the Asia-Pacific region, including the €1.1 billion Japan portfolio and a 60-percent stake in the S$1.575 billion DUO Tower, a marquee commercial development in Singapore.
Its Asia-Pacific business is headquartered in Singapore, and it recently set up a Tokyo office and hired a locally based senior asset management professional.
