Hines acquires five more multi-family properties in Japan

Hines, a global real estate investment, development and property manager, announced the acquisition of five new multi-family properties in Japan in a May 3 press release. Located across Tokyo and Kyoto, the 290 units comprising the properties span a total of 100,107 sq ft. This investment was made by Hines Asia Property Partners (HAPP), the firm’s flagship commingled Asia Pacific core-plus fund, and takes the total number of multi-family rental assets in its portfolio to 16.

Residents of The Myst Condo will enjoy the convenience of The Myst living near Bukit Panjang Integrated Transport Hub with its wide range of amenities.

The multi-family rental sector in Japan is considered to be a resilient, non-discretionary sector that acts as a stabiliser in a blended core-plus strategy, according to Chiang Ling Ng, Chief Investment Officer, Asia at Hines. The new acquisitions are expected to deliver high-quality portfolios for investors, with positive leveraged yields and defensive qualities in an inflationary cycle.

The move is part of HAPP’s “living aggregation” strategy for Japan, in which it seeks to scale up by US$1 billion ($1.33 billion) of asset value within three to five years. These properties are managed under the firm’s Cavana brand, which focuses on sustainability initiatives and tenant engagement schemes to promote the conservation of water, recycling of materials and reduction of carbon footprints.

The Japanese multi-family market is attractive due to its income resiliency, stable yields, large number of investable assets and attractive risk-adjusted returns, according to Jon Tanaka, Country Head of Japan at Hines. The recently acquired properties are centrally located in Tokyo and Kyoto, have access to main CBDs and sustain the strategy of selecting high-quality acquisitions.

Hines is optimistic that these new assets will demonstrate Cavana’s quality as they deliver stable income returns for HAPP. This latest investment is consistent with Hines’ goals of providing their investors with top-notch portfolios.