In its first overseas acquisition, Japan’s Nomura Real Estate Holdings is looking to buy U.K’s real estate investment manager Lothbury Investment Management (LIM) to give its Japanese institutional investors a better exposure to foreign market, Nikkei Asian Review reported.
As per the report, Nomura is expected to pick 75 per cent in the investment manager for over 5 billion yen ($44.6 million).
Following the acquisition, LIM is likely to become a subsidiary of Nomura and will handle the projects of both companies as a joint development.
Nomura operates under the brand PROUD and OHANA for residential development, leasing, investment management, property brokerage and other management segments.
Funds of Nomura are managed as real estate investment trust through its subsidiary, Nomura Real Estate Asset Management. It is looking to expand its overseas property fund operations in North America and Asia.
As for LIM, it manages unlisted property vehicles on behalf of institutional investors having about £2.10 billion ($2.7 billion) of assets under management.
LIM recently acquired the Travelodge hotel in Southwark, London for £56.3 million ($74.4 million). The purchase was made on behalf of a UK pension fund as part of a strategy to acquire prime assets including features like index-linked rent reviews.