Patrizia, a German real estate investment manager, has set up a 1-billion-euro (around $1 billion)acquisition vehicle to hunt for core-plus and value-add opportunities in Japan’s multifamily sector, per an announcement.
With fresh capital injection from a major Asian institutional investor, whose identity is not disclosed, the Singapore-domiciled fund is targeting Greater Tokyo and other major cities in one of Asia’s most bustling property markets.
The European investor is planning to implement its the Singapore-domiciled fund is targeting Greater Tokyo and other major citiesasset management strategy by giving rooms and exterior design a makeover as well as adopting effective operations to boost up the valuations of secondary assets in its investment pipeline.
“Japan is an incredibly attractive market thanks to the large size of its real estate sector, political stability, and strong economy. Our partnership with one of the world’s major institutional investors is a step change in our APAC growth story and Patrizia’s international investment activities as a truly global real assets player,” said Wolfgang Egger, CEO of Patrizia.
Patrizia made its foray into Japan in a takeover deal of Kenzo Capital Corporation, a property investment advisor and asset manager, in 2019. Inheritance of the buyout includes fund management mandate and assets under management (AUM) of Kenzo Japan Real Estate GmbH, a Japan-focused fund which the companies co-launched in 2017.
Combined with its existing portfolio, Patrizia is looking to upsize its AUM in Japan to 2 billion euros by 2027 out of its 55-billion euro global portfolio.
The news comes after it welcomed Katsumi Nakamoto, an ex-Mitsubishi veteran, as president and CEO in July last year to head its Japan division, which has over 10 real estate experts overseeing its investments. Patrizia officially opened its office in Japan in 2019.