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.