AXA Investment Managers – Real Assets has acquired a 10-storey residential tower in Japan’s third-largest city, Nagoya, marking its 13th investment in the country.
The new acquisition, Axa IM's fifth in the Nagoya residential market, pushes the firm’s total investments in Japanese residential assets on behalf of clients to more than ¥36.5 billion ($340 million). This compares to the total residential asset portfolio of €22 billion ($25 billion) invested across 15 countries.
The 171-unit «Aden Imaike East» is a six-minute walk from Imaike subway station, which connects to the central retail and business districts within five and 10 minutes respectively.
Constructed in 2007, the 5,965 square meter Grade A building is designed to attract young single occupants and dual-income couples due to its affordable rents and accessibility to the city center, the announcement said.
Strong Potential
Nagoya is Japan's fourth-largest city and third most populous urban area, located 100 minutes from Tokyo and 50 mins from Osaka by bullet train. The city is a manufacturing and shipping hub, and is known as the center of the country's automotive industry.
According to Axa IM, the city's residential market lacks affordable stock for rent, with demand rising in line with robust economic growth and infrastructure investment. The firm recently acquired a 620-bed multi-generational residential tower and S-FORT Sanno, an 11-storey building located to the south of the city.
«This latest addition to our Japanese residential portfolio underlines our belief in the strength of the Nagoya market, supported by the city’s growing population and continued improvement in its infrastructure offering, both of which underpin the potential for us to generate stable income and long-term value creation on behalf of our clients,» Laurent Jacquemin, Axa IM - Real Assets head of Asia-Pacific, said about the acquisition.
