Allianz Real Estate, the real estate investment manager within the global Allianz Group, has signed a sale and purchase agreement to acquire from Blackstone-managed funds a portfolio of multi-family residential assets in Japan for EUR1.1 billion ($1.67 billion).
The portfolio of properties comprises 82 assets, or about 4,600 residential units comprising 1.7 million sq ft of net rentable area. All the assets are on a freehold basis, and 78 are located in the four major cities of Tokyo, Osaka, Nagoya, and Fukuoka. The portfolio has a current occupancy rate of 97% and enjoys a well-diversified tenant base.
The acquisition is in line with Allianz’s strategy of acquiring core income-producing assets to hold for the long term, and is a “meaningful exposure” into Japan’s multi-family residential sector, says Rushabh Desai, Asia Pacific CEO of Allianz Real Estate.
“[This is] a sought-after asset class offering one of the highest stabilized yield spreads in the world. Japan is the world’s third largest multi-family residential market with strong urbanization trends coupled with limited net supply in the four major cities,” he says.
The transaction is expected to be completed by the end of the year.
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