Scottish asset management giant Aberdeen Standard Investments (ASI) has formed a joint venture that will target the Japanese property market.
As well as investing in residential property in Japan, the tie-up with Sumitomo Mitsui Trust Bank will pump money into other mature markets across Asia Pacific, ASI said.
The new venture will target investments in residential assets such as multi-family, senior housing, student accommodation and corporate housing.
ASI, which manages some £500 billion of assets globally, said that a continued trend towards urbanisation in Japan, especially the country’s largest cities such as Tokyo and Osaka, provided the “structural underpinning” to the joint venture’s strategy, bolstered by “significant rental and yield gaps between new and older buildings”.
David Paine, global co-head of real estate, Aberdeen Standard Investments, said: “The joint venture is an important step in expanding our global investment offering.
“We are pleased to partner with Sumitomo Mitsui Trust Bank to bring a new Japan-focused real estate strategy to clients, and look forward to building out this relationship.”
Kengo Noguchi, senior managing executive officer, Sumitomo Mitsui Trust Bank, said: “We are confident in a successful partnership building on our strong capabilities in real estate brokerage and asset management.”
Kang Puay Ju, head of real estate Asia Pacific and global head of real estate multi-manager, Aberdeen Standard Investments, added: “Over the next decade cities in the Asian Pacific region are set to experience very strong growth, fuelled by both domestic and foreign immigration to major metropolises, which bode well for housing demand over the medium-term.”
ASI said environmental, social and governance factors would be “fully embedded into the investment process”.