Hong Kong, Nov. 8, 2021 – Heitman LLC (“Heitman”), a global real estate investment management firm, has announced the acquisition of a portfolio of eight multifamily assets, located across Tokyo’s prime residential submarkets. Heitman acquired the portfolio in connection with its global investment strategy.
The portfolio consists of newly completed and soon to be completed residential assets with nearby access to metro and rail stations, which are within a 10-minute walk from each property. Five properties are recently completed and in active lease-up, with three properties under development and scheduled for completion by year-end. The portfolio encompasses 329 units that are adaptive to market demand trends with a majority focus on the studio format to better serve the growing segment of young professionals in Tokyo seeking convenience and amenities in the city.
The acquisition extends Heitman’s global living sectors into the Japanese market. Heitman, on behalf of its clients, is currently invested in nearly 20,000 units or $6.7 billion of multifamily assets in North American and Europe.
“We are pleased to acquire this high-quality and well-located Tokyo multi-family portfolio,” said Brad Fu, Heitman Head of Acquisitions of Asia-Pacific Private Equity. “We are seeing strong lease-up momentum and anticipate that we will see long-term resiliency in the residential sector underpinned by sustained urbanization and limited net new supply in Tokyo.”
“We identified Japan multifamily as a target for our initial global strategy’s portfolio construction due to its delinked demand drivers and cash flows less correlated to economic conditions,” said Gordon Black, Heitman Senior Managing Director and Portfolio Manager.