AXA Investment Managers – Real Assets (AXA IM – Real Assets), the real estate fund management division of French insurer AXA, has purchased a 10-storey residential tower in Japan, marking the firm’s 13th acquisition in the country and fifth in the Nagoya residential market.
The Paris-based real estate fund manager, which has a 22-billion euro ($25 billion) portfolio of residential assets under management in 15 countries, said the Grade A building, known as Aden Imaike East, comprises 171 rental units, including 63 studios and 108 one-bedroom apartments.
The firm did not disclose the financial details of the transaction.
The building is particularly attractive to young single occupants and dual-income couples due to its affordable rents and accessibility to the city centre, the firm said.
The business has now invested more than 36.5 billion yen ($340 million) in Japanese residential assets.
Laurent Jacquemin, head of Asia Pacific at AXA IM – Real Assets, said the latest acquisition underlines the firm’s belief in the strength of the Nagoya market, supported by the city’s growing population and continued improvement in its infrastructure offering.
“Both of which underpin the potential for us to generate stable income and long-term value creation on behalf of our clients,” Jacquemin said.
The deal was closed against the backdrop of the current COVID-19 environment. Jacquemin said residential asset classes have proven to be highly defensive, both historically and so far in the current crisis.
The 5,965 square metre property is located close to Nagoya’s central business district and is a six-minute walk from the Imaike subway station.
Nagoya is the centre of Chukyo metropolitan area, the third-largest in Japan with a population of 9.5 million. Its residential market is characterised by a shortage of affordable stock for rent. At the same time, demand continues to rise in line with robust economic growth and infrastructure investment, the firm said in a statement.
The latest deal followed the firm’s 20-billion yen ($186 million) acquisition of a residential complex in Nagoya, its largest residential investment ever in the country. In November, the firm also acquired an 11-storey residential tower, known as S-FORT Sanno, from a local real estate company for an undisclosed amount.
It also purchased a 1.65-acre site in Sapporo, Japan for the development of a hotel and offices, for 25 billion yen ($220 million).