Hines acquires five more multi-family properties in Japan

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Hines, the global real estate investment, development, and property manager, has announced the acquisition of five new multi-family properties in Japan. The properties, located across Tokyo and Kyoto, amount to a total of 100,107 sq ft and comprise 290 units.

This acquisition was closed by Hines Asia Property Partners (HAPP), the firm’s Asia Pacific core-plus fund. It brings the total number of multi-family rental assets in the portfolio to 16, following last year’s purchase of 11 multi-family assets in Japan.

Chiang Ling Ng, Chief Investment Officer, Asia, at Hines, says that the multi-family rental sector in Japan is an admirable choice for a blended core-plus strategy. “It is anticipated to be defensive in an inflationary cycle, and with positive leveraged yields, it is hoped that these new acquisitions will continue to add to the growing footprint in the region,” Ng adds.

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The latest acquisitions are part of HAPP’s “living aggregation strategy” for Japan, which is aiming to scale up by US$1 billion ($1.33 billion) of asset value through in three to five years.

The properties are managed under the Cavana brand, targeting urban dwellers in major Japanese cities. Its goal is to promote sustainability initiatives and encourage tenants to conserve water, recycle materials, and reduce their carbon footprint.

Jon Tanaka, Country Head, Japan at Hines, says that the Japanese multi-family market is an attractive investment strategy with its resiliency of income, stable yield, and attractive risk-adjusted returns. “Plus, our latest assets are in central locations across Tokyo and Kyoto and have good accessibility to CBDs,” he adds.

The acquisitions also highlight the Cavana brand as a symbol of quality, and it is thought that the properties will produce stable income returns for HAPP.