Transactions - JUNE 22, 2017

CBRE Global Investors and Universal-Investment acquire portfolio of residential assets in Japan

by Released

CBRE Global Investors and German investment company Universal-Investment have acquired a large portfolio of residential assets in Japan. The acquisition was made for the account of their client, Bayerische Versorgungskammer, one of Germany’s largest institutional investors.

“As one of the largest acquisitions we have made globally, it is the third investment in Japan and fifth in Asia jointly executed with CBRE Global Investors for the account of BVK and is consistent with the geographic diversification that German institutional investors are seeking,” said Alexander Tannenbaum, managing director at Universal-Investment in charge of the real estate division. “The projected economic growth in these markets coupled with the high demand for this class of residential units makes this investment a great fit for the BVK mandate.”

The portfolio comprises 39 properties, with more than 1,500 residential units that are geographically well-diversified across Japan. The portfolio is expected to provide long-term stable performance for the client.

The blended occupancy is more than 90 percent, with the majority of the portfolio located in Greater Tokyo and other economically vibrant cities, such as Osaka, Sapporo and Fukuoka. The assets primarily feature compact residential units of excellent quality that are well-located in their submarkets, providing superior access to public transportation and only a short ride away from the nearest business districts.

“Occupier demand for compact residential apartments that are conveniently located in major cities in Japan has historically been exceptionally stable and is expected to remain so as the number of single-person households continues to increase,” said Michael Pierce, portfolio manager of CBRE Global Investors. “Stability of existing properties should be further buoyed as new supply is constrained by the rising cost of land, materials and labor. The quality and composition of this portfolio make it uniquely well-positioned to outperform the broader market during our projected long-term investment period.”

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