Hines acquires five more multi-family properties in Japan

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Hines, a global real estate investment, development and property manager, has announced the acquisition of five multi-family properties in Japan. Consisting of 290 units across Tokyo and Kyoto, and spanning a total of 100,107 sq ft, the purchase was made by Hines Asia Property Partners (HAPP), the firm’s flagship commingled Asia Pacific core-plus fund.

This brings the total number of multi-family rental assets in its portfolio to 16, following the purchase of 11 assets with over 400 units in Japan last year.

In the press release, Chiang Ling Ng, Chief Investment Officer, Asia, at Hines highlighted the multi-family rental sector in Japan as a resilient, non-discretionary sector. Considered defensive in an inflationary cycle, the new acquisitions promise to deliver a high-quality portfolio to investors.

Under HAPP’s “living aggregation strategy”, it has plans to scale up by US$1 billion of asset value in three to five years, targeting urban dwellers in major Japanese cities through its Cavana brand. Cavana focuses on sustainability initiatives, providing tenant engagement schemes to encourage the conservation of water, recycling of materials and reduction of the carbon footprint.

Jon Tanaka, Country Head of Japan at Hines, describes the Japanese multi-family market as “an attractive investment strategy due to its resiliency of income, stable yield, a large number of available investable assets and attractive risk-adjusted returns.” The latest acquisitions are in central locations across Tokyo and Kyoto, providing good accessibility to the CBDs – reinforcing their strategy of being highly selective with high-quality investments.

It is anticipated that these newly acquired properties will produce stable income returns for HAPP, further showcasing the Cavana brand as a symbol of quality.