Hines, a global real estate investment, development and property manager, announced in a May 3 press release that they have acquired five rental properties spread across Tokyo and Kyoto. These properties are 100,107 sq ft in total and comprise of 290 units. This is the second move in their multi-family assets investment series, following their purchase of 11 assets in Japan last year, consisting of 400 units or 150,694 sq ft.
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Chiang Ling Ng, the chief investment officer for Hines in Asia, said that these multi-family rental assets are resilient, non-discretionary investments and are anticipated to be strong in an inflationary cycle. In order to maximize their return, Hines has launched their “living aggregation strategy” for Japan, which aims to add US$1 billion ($1.33 billion) of asset value in three to five years.
These acquisitions are managed by Hines through their ‘Cavana’ brand, focusing on sustainability initiatives and tenant engagement schemes. Cavana is designed with urban dwellers in mind and actively encourages them to reduce their carbon footprint by conserving water and recycling material. The five properties are located in central locations of Tokyo and Kyoto, with good access to the CBDs.
Jon Tanaka, country head of Japan at Hines, believes that the Japanese multi-family market remains an attractive investment option due to its income resiliency, stable yields, numerous investable assets and risk-adjusted returns. He seems confident that the new acquisitions will produce stable income returns for the HAPP investments and further highlight their Cavana brand as a symbol of quality.