Axa IM Alts has acquired €423 million (¥58 billion) of Japanese residential assets in two separate transactions. The acquisitions provide a portfolio of 29 multi-family residential assets and four student accommodation assets.
The 1,482 unit multi-family portfolio has all been constructed in the last two years and includes a high proportion of studio apartments. Most of the assets include shared common facilities and are located in high-density neighbourhoods within Greater Tokyo and Osaka.
The student accommodation portfolio has 539 studio apartments operated by National Students Information Centre, one of the largest student housing operators in Japan. The assets are located in four highly populated neighbourhoods in Greater Tokyo
The multi-family markets account for over 43% of Japan’s total population and those in Tokyo and Osaka are characterised by increasing demand for high-quality rental assets.
The deals are Axa IM Alts’ second and third acquisitions in Japan this year and are part of the company’s wider long-term strategy to invest in residential asset classes supported by strong demographic drivers.
“These transactions extend our residential footprint in two of Japan’s most densely populated cities, where demand for high quality residential units significantly exceeds current supply,” said Laurent Jacquemin, head of Asia-Pacific at Axa IM Alts. “Against a volatile macroeconomic backdrop, the highly defensive build-to-rent and student accommodation sectors are two of Axa IM Alts strong conviction calls, reflecting their favorable demographic and societal drivers and attractive income and capital growth characteristics. Japan, and the APAC region as a whole, remains a key focus for the business.”