AXA IM Alts makes first investment in Japanese care-home market with €156m portfolio acquisition

AXA IM Alts has acquired a portfolio of 15 nursing homes, located across Tokyo, Osaka and Aichi, Japan, for €156 million ($164 million), including acquisition costs. The transaction is AXA IM Alts first in the sector in Japan, and has been made on behalf of AXA IM Alts clients.

The portfolio totals more than 800 beds across 15 assets, 14 of which have been constructed after 2013. It is let to five established operators, with a weighted unexpired average lease term of 19 years. Osaka, Aichi and Tokyo are three of Japan’s four largest cities, with significant aging and affluent populations, and the portfolio benefits from its proximity to local infrastructure and the respective CBDs.

The Japanese care-home sector is characterized by a shortage of good quality stock, with the demand supply imbalance expected to widen as Japan’s elderly population increases. The number of 65-or-older seniors is forecast to grow by 20 percent during the next 20 years, according to Jap