Allianz and the CDPQ rely on the assets of Japanese apartments

Posted on 12/24/2021


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

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

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

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

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

Keywords: Caisse de Dépôt et placement du Québec.


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