Allianz Asia property fund buys $160m Japanese residential assets

Allianz Real Estate has added $160m (€135m) worth of assets to its Japanese multifamily interests.

The manager, on behalf of the Allianz Real Estate Asia-Pacific (AREAP ) Core Fund 1 fund, has bought a portfolio of 18 newly-built properties, with 380 units offering 12,240sqm of net rentable area in Tokyo 23 wards.

Rushabh Desai, Asia Pacific CEO of Allianz Real Estate, told IPE Real Assets: “Residential in Japan has proved to be one of the most resilient and defensive asset classes. The strong performance of our existing portfolio has validated our conviction.”

Desai said occupancy had remained high because tenants were less inclined to move, especially during COVID-19. Tenants were also attracted to new buildings which were well located, closer to train stations.

“This portfolio, like the one we purchased in May, is newly-completed and on an average six minutes from nearest train stations,” he said. Allianz bought 11 new residential towers for €110m in May.

“Time and again we have proven we can execute, across the region, with credibility and in a timely fashion. Since our first residential deal in Japan last November, we have developed excellent relationship with the local market participants including developers and banks,” he said.

Alllianz bought €1.1B in Japanese apartments from Blackstone last year.

Its total investments on Japanese multifamily assets to nearly $1.6 billion in the past ten months.

Ref: realassets.ipe