Savills Launches Japan Residential Fund

Savills Investment Management (Savills IM) today announced the first close of its Japan Residential Fund II (JRF II) at USD 200 million, with a global multi manager acting as cornerstone investor.

The fund represents Savills IM’s first open ended core fund for Asia; following expected conversion at 36 months or before. The Fund’s first committed acquisition is a high-quality portfolio of nine residential assets in Greater Tokyo.

The fund, which marks the fourth Japanese fund launched by Savills IM, is discretionary in nature with a long-term investment horizon. The fund will seek to capitalise on Japan's ongoing urbanisation and demographic shifts towards smaller household sizes, which support high occupancy rates and rising tenant demand for quality multifamily units in Greater Tokyo and the major regional cities.

The launch follows the final close last year's Japan Value Fund II at USD 500 million equity. Japan Value Fund I was wound up in 2020 after delivering outperformance against targeted returns over its 4-year life, according to the company.

“The defensive nature of low-risk assets such as Greater Tokyo multifamily strikes a strong chord with investors during these times of global uncertainty", Tadaaki Kurozumi and Tom Silecchia, Co-Heads of Japan, Savills IM, said at the launch of the fund.

- APMR News