Global real estate investor Hines has made its first investment in Japan’s multifamily sector, while Toronto-based private equity firm Northleaf has opened a new office in Tokyo.
Hines buys 11 rental residential assets in Japan
US real estate developer Hines has acquired 11 multifamily assets in Japan for its flagship pan-Asian fund Hines Asia Property Partners (HAPP).
Spanning over 14,000 square metres in total, the newly-added properties have a combined 400 units across Tokyo, Nagoya, and Fukuoka, according to a company release. The assets will be managed under the firm’s new Cavana Brand, which targets urban populations in major Japanese cities.
The acquisition marks the firm’s foray into the Asia-Pacific and Japan’s rental residential sector as part of HAPP’s living aggregation strategy for its investments in Japan, which is targeting a portfolio worth $1 billion in asset value in three to five years.
“The timing is excellent for investing in the Japan multifamily market as it is the only country in the Asia-Pacific with a substantial and established ‘for rent’ residential property sector, which is also attractive due to its stable yield and wide availability of investable assets,” said Jon Tanaka, Senior ManagingDdirector, Japan, at Hines.
Launched in 2021, the HAPP fund is a core-plus fund that aims to invest in logistics, commercial, residential, and niche sectors in real estate. The fund has accumulated around $400 million from Cadillac Fairview, the real estate unit of the Ontario Teachers’ Pension, out of the initial capacity of $900 million.
Jeff Pentland to lead Northleaf’s Tokyo office
Canadian private equity firm Northleaf Capital Partners has expanded its footprint in Asia with a new office in Tokyo, Japan.
This will be its second location in the Asia-Pacific besides Melbourne and the ninth location in Northleaf’s global network, according to a company release.
The operations in the newly-opened office will be led by Jeff Pentland, Northleaf’s founding partner and member of investment committee. Pentland, who has relocated from Toronto, will be heading the Tokyo office as managing director and head of APAC.
“We are seeing strong interest from investors across the APAC region in our private markets investment platform, including our global private credit strategy, which offers investors access to high-quality loans to mid-market businesses in North America and Europe, and our infrastructure strategy, which provides access to mid-market assets in North America and select OECD jurisdictions,” said Pentland.
Northleaf has racked up more than $3 billion over the past 12 months, bringing its total capital commitments in private equity, private credit, and infrastructure raised to date to $21 billion.