Japan property lures private equity with solid yields, prospective deals
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Loading... - Arif Siregar
- 21 Sep 2022
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A new wave of big private equity players including KKR & Co is moving in on Japan’s property market, drawn by attractive yield spreads with Japan’s low-interest rates and by prospective deals with companies that hold under-utilised assets.
Property investors worldwide are flush with cash and emboldened by stabilising vacancy rates and rents after disruption by the pandemic, and some are setting their sights on the buildings, real estate subsidiaries and other property assets cluttering up Japanese companies’ balance sheets.
“The Japanese market presents a huge opportunity,” David Cheong, managing director at KKR, told Reuters. He noted wide scope to help corporations bolster their property-related operations and boost returns on property assets.
KKR’s Japan investments have for years focused on acquiring companies, but in March it signalled a move into the local property market when it announced a 230 billion yen (S$2.3 billion) acquisition of a Japanese real estate asset manager.
Now it has 4 people dedicated to Japanese real estate and is hiring more to hunt for deals in hotels, office buildings and multi-family apartment buildings, Cheong said. Read More...
