Blackstone sells US$1.2bn Japanese multi-family portfolio to Allianz

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Allianz Real Estate, the property arm of the German insurer, has bought a €1.1bn (US$1.2bn) portfolio of core multi-family residential assets across Japan from funds managed by US asset manager Blackstone.

The portfolio holds 82 assets comprising 4,600 units mostly across Japan’s four major cities of Tokyo, Osaka, Nagoya and Fukuoka, the buyer announced.

“Japan is the world’s third largest multi-family residential market with strong urbanisation trends coupled with limited net supply in the four major cities,” said Rushabh Desai, Asia Pacific CEO of Allianz Real Estate.

Japan’s multi-family market remains a popular asset class for overseas investors, with German pension fund BVK buying an Osaka multi-family portfolio in August, as well as UK-based asset manager Aberdeen Standard Investments starting a residential joint venture with Sumitomo Mitsui Trust Bank in June.

The 160,000 sq.m. portfolio is stabilised with a 97% occupancy rate and well-diversified tenant base.

“We are very excited about our foray into the Japanese residential market with this portfolio,” Desai said.

“[Fifty-five percent] of the portfolio is located within Tokyo 23 Wards and 90% of the assets are within 10 minutes from a subway station.”

The deal follows Allianz Real Estate’s investment into Japanese logistics earlier this year, when it committed US$600m to GLP‘s logistics development funds in Japan and China in May.

The investment manager has been investing heavily in the Asia Pacific region this year, most recently teaming up with AXA and student accommodation specialist Scape Australia for an A$1.5bn (US$1.03bn) core student housing joint venture in Australia in September.

The deal is expected to close in Q4 2019.

Allianz Real Estate had €67.1bn in assets under management, as of end-June 2019.