Asia Digest: Savills IM bolsters Japan portfolio; US-based Cboe buys Chi-X Asia Pacific

Tokyo, Japan. Image by Philippsa from Pixabay.

Global real estate investment firm Savills IM has acquired a further 24 billion ($218 million) of properties in Japan, while US-based Cboe Global Markets Inc has acquired alternative market operator Chi-X Asia Pacific Holdings from investment firm J.C. Flowers & Co.

Savills IM acquires $218 million of assets in Japan

Real estate investment manager Savills Investment Management (Savills IM) said it has acquired a further 24 billion yen ($218 million) of assets for its Japanese residential strategy.

The Savills IM Japan Residential Fund II (JRFII) has now acquired or committed to acquire 27 properties, 24 of which are located in Greater Tokyo, since its launch in November 2020.

The entire portfolio has been acquired in off-market transactions, according to a company statement.

JRFII’s latest acquisitions were closed last month, and comprise 10 assets located in residential submarkets of central and outer Tokyo, central Osaka and central Nagoya.

Prior to this, the fund had acquired four Tokyo-based assets between April and May this year.

Across the current portfolio of assets, Savills IM has achieved a blended stabilised entry yield of 4%, despite the weighting towards more expensive Tokyo assets. The portfolio has 92% occupancy, excluding forward commitments.

The company said Tokyo still offers attractive risk-adjusted opportunities in the residential sector, even though increased competition for assets has driven more investment elsewhere in Japan outside greater Tokyo.

“The size and liquidity of the Tokyo residential market means it is very resilient to external shocks, as has been proven during the global financial crisis and more recently during COVID-19,” Tadaaki Kurozumi, co-head of Savills IM Japan, noted.

JRFII recently received an additional $40 million capital injection from its cornerstone investor and currently has the capacity to take on new equity partners.

The fund’s deal pipeline includes approximately 13.8 billion yen of immediately actionable stock, with the potential to bring the total gross asset value to more than 71 billion yen.

Cboe Global Markets enters APAC with Chi-X acquisition

US-based trading solutions provider Cboe Global Markets has acquired alternative market operator Chi-X Asia Pacific Holdings from investment firm J.C. Flowers & Co.

The financial terms of the acquisition were not disclosed. Cboe said the purchase price is expected to be nominally accretive to the company’s adjusted earnings in 2021.

Chi-X Asia Pacific operates offices in Australia, Japan, Hong Kong and the Philippines.

The acquisition will provide Cboe with a single point of entry into the capital markets of Australia and Japan and enable it to expand its global equities business into the Asia Pacific.

Chi-X Australia is the second-largest securities exchange in the country with an 18.6% market share. It offers trading in all Australian listed securities, as well as the exclusive trading of CXA quoted warrants and ETFs.

Meanwhile, Chi-X Japan, the third-largest equities venue in the country with a 2.5% lit market share, offers four trading books, including both displayed and non-displayed mechanisms.

Chi-X Asia Pacific generated approximately $26 million in net revenue for the 12 months ended December 31, 2020, reflecting a 26% growth over the prior year. Its non-transactional revenue comprised approximately 67% of the overall 2020 net revenue.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.