Care homes are an attractive and popular investment
AXA IM Alts, an arm of the French insurance company AXA, has made its first investment in the Japanese care home market with a 153 million euro portfolio acquisition. The investor bought a portfolio of 15 nursing homes for 21.9 billion yen, becoming the latest global investor to acquire senior living assets in the country with Asia’s oldest population. The portfolio totals over 800 beds in Tokyo, Osaka, and Aichi, with 14 of the 15 properties constructed after 2013.
Upward price trend for used Tokyo apartments
The average asking price of a 70 square meters second-hand apartment in Tokyo’s 23 wards rose in June for 24 continouus months compared to the previous month to now 68.4 million yen (503,000 euros). In the Tokyo metropolitan area, the average asking price increased in June for the 14th month in a row to 47.05 million yen (346,000 euros).
Nomura establishes real estate asset manager
Japan’s largest investment bank Nomura Holdings and its subsidiary Nomura Real Estate Holdings are establishing a new asset management company. Named Nomura Real Asset Investment, it plans to offer various types of funds for global institutional investors and wealthy individual investors in the traditional sectors (office, rental housing, retail facilities, and logistics facilities) in the first few years.
Japan’s property market booming
More than 10 companies submitted proposals to buy the government-held portion of the Otemachi Place complex in Tokyo before the deadline Thursday. The price could top the Japanese record for a finished high-rise building, set by last year’s estimated 300 billion yen sale of ad agency Dentsu’s headquarters in Tokyo. The bidding war confirms that a weak currency and ultralow interest rates have drawn both foreign and domestic investors eyeing healthy returns. The final decision about the buyer will be made in September.
Osaka Gas to establish a private REIT
Daigas Group is preparing the launch of a private REIT with a focus on the Kansai area. Subsidiary Osaka Gas started an asset management company and a real estate fund with a capital of 6.5 billion yen. This fund will be incorporated into the upcoming REIT. Daigas Group handles about a quarter of all gas consumption in Japan.
Japan’s land prices rebound from pandemic hit
The average rosenka land price in Japan as of Jan. 1 was up 0.5% from a year earlier, rebounding from a fall in 2021 as the country recovers from the coronavirus pandemic. 20 of the country’s 47 prefectures saw increases. The rosenka survey covers 330,000 parcels of land fronting major roads.
Japan’s most famous bridge to see the light again
In the Edo period (1603-1867), the Nihonbashi (Japan Bridge) was the starting point to measure all distances to Tokyo (the former Edo). The bridge (originally erected in 1603) exists until today but vanished under the elevated metropolitan expressway. Now, the work has commenced removing the road over the historic landmark (built in 1911). After spending 320 billion yen (2.2 billion euros), the Nihonbashi will see the light again in 2040.
Japan Post and Mitsui join forces for real estate assets
The trading company Mitsui & Co. and the life insurance company Japan Post Insurance (JPI) are forming a capital and business alliance in the asset management business, including real estate. Under the new company, Mitsui will establish a new private real estate fund in which JPI will invest, aiming for assets of several hundred billion yen (100 bn yen = 700 million euros). Mitsui will hold a 51% and JPI a 49% stake.
Land prices continue their rise in the first quarter of 2022
Land prices in Japan continued their upward trend during the first quarter of 2022. According to the LOOK Report of the Ministry of Land, Infrastructure, Transport and Tourism for the first quarter of 2022, land prices at 57% of the surveyed locations increased, about double the share in the same quarter of 2021. The prices of 16% of locations decreased, compared to 27% one year earlier. Japan’s land prices had risen for the first time in two years in 2022, with the national average up 0.6%.
Japan’s tallest wooden high-rise completed
A high-rise building in Yokohama has become the tallest of its type in Japan to be built largely of wood. The construction company Obayashi was responsible for putting up the 11-story building which tops out at 44 meters. But Mitsui Fudosan and Takenaka Corporation are already planning a 17-story wood-frame office tower in Tokyo’s Nihonbashi district from 2023 with a proposed height of 70 meters.