24 May 2018
Dutch institutional real estate investment manager Bouwinvest is investing a total of € 75 million in six build-to-rent residential projects in Tokyo in partnership with TH Real Estate and Kenedix.
Combined, the development projects will deliver 516 residences in areas of the city where there is high rental demand.
Four of the projects are in the inner suburbs of Minato, Setagaya, Chuo and Suginami, which are less than 10 minutes by train from Tokyo’s Central Business District. The two other developments are in Ota, a suburb to the north of the city. Each project targets middle income earners, with modern studios and one- or two-room apartments. The residences are all within walking distance of train and metro stations.
International ambitions for growth
International growth is a priority for Bouwinvest for the coming years and it intends to invest € 1.5 billion in metropolitan areas of Europe, North America and the Asia-Pacific region. Areas of focus in the property asset manager’s strategy for the Asia-Pacific are housing, hotels, offices, retail and logistic real estate. Bouwinvest is not making direct investments but deploying capital through joint ventures, club deals and real estate funds with local partners. This investment in the Tokyo development projects is a club deal, with Bouwinvest as a 'cornerstone investor'. TH Real Estate and Kenedix are involved as fund manager and local asset manager respectively.
Tjarko Edzes, Director Asia-Pacific Bouwinvest Real Estate Investors comments: “This investment is an important step forward in our growth strategy for Asia-Pacific. We expect Tokyo’s rental market to offer stable and attractive income returns. Bouwinvest has considerable experience in residential assets, based on its investments in the domestic and international rental markets. Through this club deal we will get immediate exposure to a very attractive portfolio,” aldus Tjarko Edzes, Director Asia-Pacific, Bouwinvest Real Estate Investors.