Savills Investment Management hits $200m first close of fourth Japan fund

Tamagawa Dori, Tokyo, Japan. Photo: Thomas Schmitz/unsplash

Global real estate investment firm Savills Investment Management (Savills IM) has reached a $200 million first close for its Singapore-incorporated Savills IM Japan Residential Fund II.

A global multimanager acted as the cornerstone investor in the fund, Savills IM said in a statement. The capital has been secured from a total of five investors, according to a separate filing to the US Securities and Exchange Commission.

Savills IM did not disclose the target size of the fund.

Japan Residential Fund II is the fourth Japanese fund launched by Savills IM, and its first open-ended core fund for Asia. The vehicle will have an expected conversion at 36 months or earlier.

It has made the first committed acquisition of a portfolio of nine residential assets in Greater Tokyo.

The fund will seek to capitalise on Japan’s ongoing urbanisation and demographic shifts towards smaller household sizes, which support high occupancy rates and rising tenant demand for quality multifamily units in Greater Tokyo and major regional cities.

“The launch of Japan Residential Fund II is a further indication of the trust investors have in our local fund teams, and in particular our Japanese business where our Japan team has a 20-year track record,” said Alex Jeffrey, global chief executive at Savills IM.

“The defensive nature of low-risk assets such as Greater Tokyo multifamily strikes a strong chord with investors during these times of global uncertainty,” added Tadaaki Kurozumi and Tom Silecchia, co-heads of Japan at the firm.

Japan Residential Fund II follows the final close of Japan Value Fund II at $500 million last year.

The first residential fund, which secured a S$106.51 million investment from Singapore-based Straits Trading in early 2018, has invested in properties such as those operated by JPN Residential Holdings and JPN Residential TK Holdings.

Savills IM has originated, invested, and transacted over $6 billion in the Japanese market since 2014.

Singapore Reporter/s

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

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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.