Allianz Real Estate, in partnership with Ivanhoé Cambridge, establishes USD 2 billion platform to invest in Japan multi-family residential property

“The Japan multi-family residential sector has displayed resilience throughout the COVID-19 pandemic and continues to be a high-conviction asset class, offering stable cash flows and attractive stabilized yield spreads to investors,” said Rushabh Desai, Asia Pacific CEO of Allianz Real Estate. “We are very excited to establish this partnership with Ivanhoé Cambridge. The combined expertise will place the Venture in good stead to build a diversified portfolio of high-quality Japanese residential assets with strong ESG credentials.”

“This Venture is an excellent opportunity for us to launch our new investment strategy of Japan multi-family, an attractive sector underscored by robust urbanization trends and limited net supply. This investment will serve to further grow and diversify our portfolio in Japan and Asia-Pacific,” said George Agethen, Senior Vice-President at Ivanhoé Cambridge. “Allianz Real Estate is a like-minded partner, and we are happy to extend our collaboration with them to Asia-Pacific.”

Allianz Real Estate’s exposure in the Asia-Pacific region amounted to USD 8.8 billion as at the end of September 2021. Its Asia-Pacific business is headquartered in Singapore with local offices in Tokyo and Shanghai. Over the last few years, Allianz Real Estate has steadily increased its portfolio of Japanese multi-family investments, which presently comprises 6,000 units across 134 assets and USD 1.7 billion in Gross Asset Value, as well as established an experienced on-the-ground team in Tokyo.

Ivanhoé Cambridge has a growing presence in Asia-Pacific with offices in Singapore, Shanghai, Mumbai and Hong Kong, with a real estate exposure of approximately CA$6 billion in its key markets of China, India, Australia, Singapore and Japan. 2021 was another record year for Ivanhoé Cambridge’s continued diversification towards Asia Pacific, with up to CA$3.4 billion allocated to new strategies focused on the region’s urbanisation and technology-driven macro trends. 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.