QIP launches Japan-focused multi-family fund with US$40 mil seed portfolio

SINGAPORE (EDGEPROP) - Singapore-based private equity firm Q Investment Partners (QIP) has launched a Japan-focused multi-family fund that is a joint venture with real estate investment manager Alyssa Partners.

See also: TE Capital acquires portfolio of prime multi-family residential assets in Tokyo

The fund will invest in stabilised residential assets across Japan, targeting net positive demographic markets. Alyssa, which has offices in Tokyo and Hong Kong, will act as the local operating partner in addition to being a co-investor.

A portfolio of seed assets has been acquired under the new fund, comprising three multi-family assets with a combined value of US$40 million ($55 million). The assets are located across Yodogawa Ward in Osaka and Naka Ward in Nagoya, with a total of 207 units that are currently at around 90% occupancy. The assets are expected to generate an 8% to 10% IRR (internal rate of return) and a targeted annual yield of 5%.

QIP CEO Peter Young says that the joint venture with Alyssa further solidifies QIP’s standing as a leading investor and provider of residential living real estate assets. “It also highlights the attractive risk-adjusted investment returns that are available via Japan’s multi-family sector, an asset class that is highly in demand from institutional investors,” he adds.

Meanwhile, managing partner and CEO at Alyssa Partners Chedli Boujellabia says the firm is grateful to have been selected as QIP’s Japan partner. “We are very pleased to have teamed up with QIP to elaborate a strategy for investing in Japan multi-family assets,” he says. The announcement of the joint venture between QIP and Alyssa comes days after the latter announced a co-investment with Blackstone to acquire 19 multi-family assets in Japan.