Allianz Real Estate, the real estate investment unit of German insurance major Allianz Group, has paid €110 million (about $122 million) for a portfolio of multi-family residential assets in Tokyo, Japan.
According to a company statement, the transaction involves 11 newly built assets with 275 units offering 8,400 square meters of net rentable area. The assets are located in Tokyo 23 wards and are on average within six minutes of a subway station.
The acquisition comes as the company’s existing multi-family portfolio in Japan continues to perform strongly, according to Allianz Real Estate Asia Pacific CEO Rushabh Desai. The said portfolio currently has over 96 per cent occupancy and rental growth, he added.
“Multi-family assets in Japan’s ‘big four’ cities, particularly Tokyo, continue to remain attractive with strong urbanisation trends coupled with limited net supply,” Desai said.
The deal follows Allianz Real Estate’s acquisition of a portfolio of multi-family residential assets in the country from Blackstone managed funds for about $1.2 billion in November.
In March, the real estate investment firm announced that its assets under management in Asia reached billion €5.5 billion ($6.5 billion) at the end of 2019, an 83 per cent rise from the previous year. It recently opened offices in China and Japan as part of an Asia Pacific expansion drive.
A significant number of Allianz Real Estate’s largest deals in 2019 took place in the Asia-Pacific region, including a $1.2 billion portfolio of core multi-family residential assets in Japan, as well as a 60 per cent stake in DUO Tower, a marquee commercial development in Singapore.
Globally, the company said its AUM reached a record €73.6 billion ($84 billion), up 16 per cent year-on-year, largely due to a continued diversification. Equity investments increased 20 per cent to €52.9 billion ($60.3 billion) while debt financing reached €20.7 billion ($23.6 billion), up 8 per cent year-on-year.