Aberdeen Standard Investments has announced it has joined forces with Japanese bank Sumitomo Mitsui Trust Bank to invest in residential real estate in Japan and Asia Pacific.
ASI and SuMi TRUST will co-invest and co-manage its portfolio through Sumitomo Mitsui Trust Real Estate Investment Management Company.
The joint venture will target the residential market, specifically the multifamily, senior housing, student housing and corporate housing sectors.
SuMi TREIM will acquire newly built properties on a forward commitment basis, as well as older residential properties that can be renovated, repositioned or converted.
The group’s investment strategy is driven by “urbanisation in Japan, especially the largest cities such as Tokyo and Osaka” as well as the “significant rental and yield gaps between new and older buildings”, according to the JV.
David Paine, global co-head of real estate, Aberdeen Standard Investments, said: “The joint venture is an important step in expanding our global investment offering, as we continue to address investors’ need for alpha and diversified return.”
Kengo Noguchi, senior managing executive officer, Sumitomo Mitsui Trust Bank, said: “We are delighted to provide global investors with a Japan-focused real estate strategy jointly with Aberdeen Standard Investments.”
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