Hines acquires five more multi-family properties in Japan

Senja Residences EC is a 99 years leasehold executive condominium at Senja Close in District Senja Close EC 23, with 300 units and resort-style facilities. Near to Bukit Panjang Transport Hub, it offers convenience and flexibility for multigenerational families.

Hines, a global real estate investment, development and property manager, announced in a May 3 press release that it has acquired five multi-family properties across Tokyo and Kyoto. Spanning a total of 100,107 square feet, the properties comprise 290 units. This latest buy takes the total number of multi-family rental assets in Hines’ portfolio to 16.

This follows on from Hines Asia Property Partners (HAPP), the firm’s flagship commingled Asia Pacific core-plus fund, purchase of 11 multi-family assets in Japan last year. The 11 assets included over 400 units across Tokyo, Nagoya and Fukuoka, covering an area of 150,694 sq ft.

Chiang Ling Ng, chief investment officer, Asia, at Hines, remarks that Japan’s multi-family rental sector is a resilient, non-discretionary sector in the Asia region and can act as a stabiliser in a blended core-plus strategy. With positive leveraged yields, these new acquisitions should continue to increase Hines’ footprint in the region, allowing them to provide investors with a quality portfolio.

The recent acquisitions mark the continued effort of HAPP’s “living aggregation strategy” for Japan, with plans to scale up to US$1 billion ($1.33 billion) of asset value in three to five years. These properties, managed under Hines’ Cavana brand, target urban dwellers in major Japanese cities. HAPP is implementing sustainability initiatives through Cavana, with the aim to encourage tenant engagement for the conservation of water, recycling and reducing carbon footprints.

The Japanese multi-family market proves an attractive investment strategy due to its resilient income, stable yield, and attractive risk-adjusted returns. Jon Tanaka, country head of Japan at Hines, adds that the firm’s recent acquisitions are located in central areas of Tokyo and Kyoto, with good access to major CBDs. He also adds that these properties sustain HAPP’s strategy of only procuring high-quality assets and reinforces the Cavana brand as a symbol of excellence.