The major Dutch pension fund manager, APG, has joined forces with Swiss asset manager UBS to set up a new Japanese multi-family real estate investment club.
APG has made an initial commitment of $175 million as a founding partner. Both partners believe that there are strong, underlying fundations in certain Japanese residential markets, due to strong population growth, shrinking household sizes and low home ownership. Furthermore, they see the asset class as having a defensive profile, providing stable and visible income to investors, as multi-family occupancy rates remain stable over market cycles.
APG global head of real assets and managing director, Patrick Kanters, said: “This investment is consistent with APG’s strategy to selectively target sectors that are in early stages of becoming institutional in Asia Pacific but provide superior risk-adjusted returns potential. The partnership with UBS-AM marks the next step in our strategy of investing in quality residential properties in Tokyo and Osaka.”