Allianz Real Estate, acting on behalf of several Allianz companies, has signed a sale and purchase agreement to acquire a portfolio of multifamily properties, worth €1.1 billion, in Japan from Blackstone managed funds.
The multifamily portfolio comprises 82 assets – 4,600 units offering 160,000 sqm net rentable area. 78 out of the 82 assets are located in Japan’s four major cities: Tokyo, Osaka, Nagoya and Fukuoka. The portfolio is stabilized with a current occupancy of 97% and a well-diversified tenant base. All assets are on a freehold basis. This acquisition is in line with Allianz’s strategy of acquiring core income producing assets for long-term hold.
“This is an outstanding opportunity for Allianz to secure a meaningful exposure to the Japanese multifamily residential sector, a sought-after asset class offering one of the highest stabilized yield spreads in the world. Japan is the world’s third largest multi-family residential market with strong urbanization trends coupled with limited net supply in the four major cities,” said Rushabh Desai, Asia Pacific CEO of Allianz Real Estate.
“We are very excited about our foray into the Japanese residential market with this portfolio. 55% of the portfolio is located within Tokyo 23 Wards and 90% of the assets are within 10 minutes from a subway station. With this transaction, Allianz Real Estate has once again demonstrated its ability to execute on large competitive transactions. We have an excellent asset management infrastructure in place to be able to successfully manage this portfolio,” he added.
The transaction is expected to complete in Q4 2019.