AXA IM Alts acquires 15 nursing homes in Japan for $163m

AXA IM Alts acquires 15 nursing homes in Japan for $163m

Photo: MedicAlert UK / Unsplash.com

Global alternative investment manager AXA IM Alts has officially forayed into the Japanese care home market following its acquisition of a portfolio of 15 nursing homes in the country for €156 million (about $163 million).

In a statement, AXA IM Alts said the transaction, which is its first in the sector in Japan, involves over 800 beds across 15 assets in Tokyo, Osaka, and Aichi, three of the country’s four largest cities. Fourteen of the assets have been constructed after 2013.

The nursing homes are let to five established operators, with a weighted unexpired average lease term of 19 years. The portfolio is situated near local infrastructure and central business districts, per the announcement.

“Establishing long-term relationships with leading operators will allow us to quickly scale our platform, in a sector we view as highly defensive and benefitting from the tailwinds of compelling long-term demand-supply dynamics,” said Laurent Jacquemin, AXA IM Alts head of Asia Pacific, Real Assets.

According to reports cited by AXA IM Alts, the demand-supply imbalance in the Japanese care home sector is expected to widen as Japan’s elderly population increases, with the number of over-65s forecast to rise by 20% over the next 20 years.

“This is a rare opportunity to acquire a modern and diversified portfolio of care home assets with an attractive trading history, in a fast-growing but still highly fragmented use class,” Jacquemin added.

The transaction marks AXA IM Alts’ fourth acquisition in Japan this year, taking its assets under management in the country to about ¥511 billion ($3.7 billion).

The firm said the acquisition forms part of its wider long-term strategy to invest in residential asset classes, supported by strong demographic drivers.

In October, AXA IM Alts announced that it acquired a portfolio of two residential assets in japan from PGIM Real Estate Japan for about $93.5 million.

Earlier, it also acquired a portfolio of multi-family and purpose-built student accommodation assets in the country for about $420 million.

The deal, which comprises 29 multi-family residential assets and a portfolio of four student accommodation assets, extends the European asset manager’s footprint in the Asia Pacific region, according to the announcement.

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