Qatar Investment Authority to grow Japanese residential portfolio to $800 million

Gaw Capital Partners, which manages the portfolio, aims to grow the Japanese residential platform to $800 million, citing resilient occupancy rates, healthy growth, and investor interest.
Qatar Investment Authority to grow Japanese residential portfolio to $800 million

Qatar Investment Authority has acquired 32 residential assets in Japan for an undisclosed amount through a portfolio managed by Hong Kong-based Gaw Capital Partners.

A Gaw Capital Partners spokesperson declined to comment on how much the portfolio is currently valued but said that it aims to grow the residential platform in Japan to $800 million.

The portfolio covers a gross floor area (GFA) of 68,432 square metres and comprises 32 assets, including 21 in Tokyo, and the rest across Nagoya, Osaka, Kyoto, Yokohama and Sapporo.

“Japan’s residential rents have historically displayed stronger resilience in an unfavourable market environment compared to other asset classes and the occupancy rates have remained resilient during the pandemic,” Gaw Capital Partners said in a statement.

“Despite the stagnant population growth nationwide, the population in central areas of major cities continues to grow with residential rents in all major cities enjoying healthy growth since 2012 due to increasing demand,” it wrote.

Liquidity for Japanese real estate was also appealing, the firm said, adding that domestic and international investors have been seeking residential assets.

Japanese real estate investment volume for the first quarter of 2022 fell 37% year-on-year but appetite remained strong, according to a CBRE report.

Institutional investors have eyed Japanese residentials in recent months, with Allianz Real Estate for instance announcing in December 2021 that it has committed $2 billion in gross asset value to build a portfolio of multi-family residential assets across Tokyo, Osaka, Nagoya and Fukuoka.

Gaw Capital Partners will continue seeking out residential property assets in Japan, and will consider factors such as location, selling price, potential to grow or value add, rental growth and currency, the spokesperson said.

QIA did not respond despite multiple attempts at contacting them. The sovereign wealth fund reached $445 billion of assets under management (AUM) in February and has undisclosed allocations to credit, real estate, infrastructure, private equity, listed equity and other alternative investments.

The sovereign wealth fund opened its New York office in 2015 and a Singapore office in 2021. In February, the fund committed $1.5 billion to Bodhi Tree, an investment firm founded by James Murdoch and Uday Shankar focused on the media and consumer tech sectors in Southeast Asia and India.

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