AXA IM Alts pays €420m for Japanese multifamily portfolio

AXA IM Alts pays €420m for Japanese multifamily portfolio

AXA IM Alts has acquired a 33-asset multifamily portfolio in Japan for €420 million (c. ¥59 billion).

Strategically located across the high-density cities of Tokyo, Greater Osaka and Nagoya, the portfolio was acquired, on behalf of AXA IM Alts’ clients, from institutional investors advised by J.P. Morgan Global Alternatives Real Estate Asia-Pacific.

The portfolio is made up of high-quality, modern residential buildings, comprising predominantly one-bed apartments that meet the needs of prospective occupiers in terms of accessibility and sustainability, with fourteen of the assets having been awarded a DBJ Green Building Certification. All assets are located in close proximity to a train or subway station, with an average walking distance of 5-7 minutes.

Accounting for almost 53% of Japan’s total population2 , the Tokyo, Osaka and Nagoya multi-family markets are characterised by increasing demand for high-quality rental assets located in each city’s most popular and well-connected submarkets. The three cities have also recorded continuous population inflow despite Japan’s shrinking population at a national level3 .

This transaction marks AXA IM Alts’ first acquisition in Japan this year, and forms part of its long-term global strategy to invest into residential asset classes which it believes are supported by strong demographic drivers. AXA IM Alts’ Japanese residential exposure currently stands at c.7,800 units and represents a growing proportion of its c. €25 billion of total residential assets under management globally .

Laurent Jacquemin, Head of Asia-Pacific, Real Estate at AXA IM Alts, commented: “This transaction further extends our residential footprint in three of Japan’s most densely populated cities, where demand for high quality rental accommodation exceeds current supply. All the properties in the portfolio have a strong track record of high occupancy and proven appeals to the respective cities’ thriving professional communities. Our decision to further scale our Japanese residential portfolio is testament to the market’s dynamism.”