AXA IM Alts pays €423m for two Japanese residential portfolios

AXA IM Alts pays €423m for two Japanese residential portfolios
These transactions mark AXA IM Alts’ second and third acquisitions in Japan this year.

AXA IM Alts has acquired a portfolio of twenty-nine multi-family residential assets and a portfolio of four student accommodation assets for €423 million (¥58 billion) in two separate transactions.

Both acquisitions have been made on behalf of clients through AXA IM Alts, which is the real estate portfolio and asset manager in Europe. 

The 1,482 unit multi-family portfolio comprises twenty-nine high-quality assets, all of which have been built in the last two years, with a high weighting to studio apartments. The majority of assets feature shared common facilities including auto-locking entrances, delivery boxes, and high-quality interiors. The portfolio is located in high density neighbourhoods within Greater Tokyo and Osaka, all of which have excellent transport links to the CBD.

The student accommodation portfolio comprises four newly constructed properties totalling 539 studio apartments. Operated by National Students Information Centre, one of the largest student housing operators in Japan. Strategically located in four highly populous neighbourhoods within Greater Tokyo, the properties provide access to between seven and eleven local universities within a 30-minute commute and all offer excellent access to the city centre.

These transactions mark AXA IM Alts’ second and third acquisitions in Japan this year.

Accounting for just over 43% of Japan’s total population, the Tokyo and Osaka multi-family markets are characterised by increasing demand for high-quality rental assets located in each city’s most popular and well connected submarkets, according to AXA IM Alts.

Laurent Jacquemin, Head of Asia-Pacific at AXA IM Alts, commented: “These transactions extend our residential footprint in two of Japan’s most densely populated cities, where demand for high quality residential units significantly exceeds current supply. Against a volatile macroeconomic backdrop, the highly defensive build-to-rent and student accommodation sectors are two of AXA IM Alts strong conviction calls, reflecting their favorable demographic and societal drivers and attractive income and capital growth characteristics. Japan, and the APAC region as a whole, remains a key focus for the business.”