Heitman LLC (“Heitman”), a global real estate investment management firm, today announced the acquisition of a nine-asset residential portfolio in Fukuoka, Japan. The investment was executed by Heitman on behalf of its global core-plus strategy and Heitman’s strategic capital partner SMFL MIRAI Partners Company, Limited (“SMFL MIRAI Partners”), which is a strategic subsidiary of Sumitomo Mitsui Finance and Leasing Company, Limited. The transaction marks the largest multi-asset residential portfolio acquisition in the city’s history.
“We have strategically focused on building our investments in scale across the Fukuoka market,” said Brad Fu, Managing Director and Head of Asia-Pacific Acquisitions for Heitman. “In addition to Heitman’s acquisitions in other sectors within Greater Fukuoka, this portfolio contributes to our long-term positioning in this pivotal market, which is underpinned by favorable demographics, affordability, and sizable inbound industry investment.”
The portfolio is comprised of 316 units diversified across key submarkets in the city, including Hakata and Hirao. All the properties offer residents accessibility to Fukuoka’s Tenjin and Hakata business districts, both reachable within 15 minutes via direct subway and bus connections. The properties feature a mix of studio, one/two, and three-bedroom units catering to a wide range of tenants, including the city’s dynamic young professional workforce and growing families.
SMFL MIRAI Partners, together with its clients and business partners, is committed to supporting social infrastructure and enhancing the long-term appeal of Fukuoka City—a city sustained by stable population inflows and employment—through the provision of high-quality residential property.
Heitman acquired the portfolio through an off-market transaction, providing an attractive entry point with both reversionary and longer-term market rental growth potential. Fukuoka’s proximity to major Asian hubs, including Busan and Shanghai, further supports its growing international appeal for new residents to Japan.
Fukuoka continues to post the highest population growth rate among major Japanese cities, with positive projections extending through 2040. Heitman’s residential portfolio acquisition aligns with its recent purchase of a major distribution center in Kyushu, also marking the largest-ever single-asset logistics transaction in the Greater Fukuoka market.
