Hines acquires five more multi-family properties in Japan

Singaporeans have turned to condominiums as a Singapore Condo more luxurious, secure and potentially lucrative alternative to HDB flats. As an investment, condos have proven to be an appreciated asset with higher income potential.

Hines, a global real estate investment, development and property manager, has recently acquired five new multi-family properties in Japan. Located across Tokyo and Kyoto, the portfolio comprises 290 units spread over 100,107 sq ft. This deal was made by Hines Asia Property Partners (HAPP), the firm’s flagshp commingled Asia Pacific core-plus fund, marking the second investment in multi-family assets in the region following a purchase of 11 such units previously.

The Japanese multi-family market is attractive due to its resiliency of income and stable yield. HAPP’s strategy of “living aggregation” is aiming to scale up by US$1 billion ($1.33 billion) of asset value in three to five years.

The newly-acquired assets are managed under Hines’ Cavana brand and are placed in urban locations with good accessibility to city centres. Sustainable initiatives have been implemented, such as tenant engagement schemes in order to reduce carbon footprint and conserve water.

The inherent resiliency of the non-discretionary sector the properties are located in is expected to remain defensive in an inflationary cycle, with positive leveraged yields. Chiang Ling Ng, chief investment officer, Asia at Hines, believes these acquisitions will “add to our growing footprint in the region, allowing us to deliver a high-quality portfolio to our investors.”

Jon Tanaka, country head of Japan for Hines, thinks these properties will generate “stable income returns for HAPP” and “highlight our Cavana brand as a symbol of quality.”

Chiang Ling Ng summarised the firm’s ambitions to “deliver a high-quality portfolio to our investors,” while Jon Tanaka commented that these properties will deliver “stable income returns.”

The Japanese multi-family market is the perfect opportunity to achieve that goal, due to its resiliency of income, stable yield, a large number of available investable assets and attractive risk-adjusted returns.

The living aggregation strategy is an opportunity to scale up the region and introduce sustainable initiatives to reduce the carbon footprint. HAPP’s portfolio now stands at 16 multi-family rental assets, with the 11 assets from last year comprising over 400 units or 150,694 sq ft across Tokyo, Nagoya and Fukuoka.

HAPP’s investments in multi-family rental assets across Asia Pacific demonstrate a commitment to providing high-quality portfolios to their investors. With the investment of 290 units across Tokyo and Kyoto, the firm has a “growing footprint in the region” and should be able to deliver on their ambitions.