Allianz and CDPQ Bet on Japanese Apartment Assets

Posted on 12/24/2021

The Japan multi-family residential sector continues to be a high-conviction asset class for some global asset owners. Allianz Real Estate established a new investment platform, in partnership with Ivanhoé Cambridge and other investors, to build a diversified portfolio of multi-family residential assets across top tier cities in Japan.

The platform, Allianz Real Estate Asia-Pacific Japan Multi-Family Fund I (AREAP JMF I), is a Singapore-domiciled, closed-end fund. Fully invested, the platform will have an investment capacity of approximately US$ 2 billion in Gross Asset Value. Equity commitments for the Venture are currently planned to total US$ 750 million within a few weeks, but depending on the pace of capital deployment, the Venture may increase equity to US$ 1 billion. For the first close, Ivanhoé Cambridge, the real estate subsidiary of Caisse de Dépôt et placement du Québec, and Allianz group companies, each committed US$ 250 million equity. Allianz Real Estate will serve as the Investment Manager and General Partner of the platform.

The strategy for AREAP JMF I is to acquire primarily newly completed, well-located assets in Japan’s four major cities, Tokyo, Osaka, Nagoya, and Fukuoka, and lease-up and stabilize the assets for long-term hold. The Venture will have a strong ESG focus, targeting use of renewable energy, implementation of green leases, green certification of assets, raising portfolio energy efficiency standards and community initiatives.

Allianz Real Estate’s exposure in the Asia-Pacific region amounted to US$ 8.8 billion as at the end of September 2021.

This new multi-family partnership is Ivanhoé Cambridge’s second Japan investment in 2021, following the last-mile logistics strategy announced earlier in the year.

Keywords: Caisse de Depot et placement du Quebec.

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