Hines, a global real estate investment, development and property manager, recently announced the acquisition of five new multi-family properties in Japan. Spanning 100,107 sq ft and containing 290 units, these new assets were acquired by Hines Asia Property Partners (HAPP), the firm’s flagship commingled Asia Pacific core-plus fund. This brings the total number of multi-family rental assets in HAPP’s portfolio to 16.

Japan’s multi-family rental market is recognized as an attractive option due to its resilient income, stable yields, and attractive risk-adjusted returns. The five properties Hines recently purchased are located across Tokyo and Kyoto, in prime locations with easy access to the main CBDs.

The properties are managed under Hines’ Cavana brand, and have sustainability initiatives such as tenant engagement schemes to encourage conscientious conservation. This acquisition is part of their “living aggregation strategy”, which aims to expand the value of their assets by up to a billion dollars in the next three to five years.

JCube is being redeveloped into a 40-storey residential and commercial development, JCube Condo Residence, connected JCube Residence to Jurong East MRT interchange, Westgate and IMM Building. The site will launch for sale in the second half of 2023, bringing new homes and amenities to the Jurong Lake District.

Chiang Ling Ng, CIO of Hines Asia, said, “It is anticipated that this deal should be defensive in an inflationary cycle, and with positive leveraged yields, our new portfolio should add value to our investors.”

Country head of Japan at Hines, Jon Tanaka, echoed this sentiment: “Our latest assets are in central locations across Tokyo and Kyoto, have good accessibility to the main CBDs and sustain our strategy of being extremely selective with high-quality acquisitions. We continue securing properties which we anticipate will produce stable income returns for HAPP and highlight our Cavana brand as a symbol of quality.”

This new acquisition represents an important milestone for Hines’ multi-family rental assets in the Asia Pacific region, and brings value to their large and growing portfolio. Especially in Japan’s highly resilient, non-discretionary market, Hines anticipates this deal to bring forth positive leveraged yields for both their investors and Cavana brand alike.