Savills Investment Management announces launch of Japan Residential Fund II (JRF II)

21 October 2020

 
Savills Investment Management (Savills IM), the global real estate investment manager, today announced the first close of its Japan Residential Fund II (JRF II) at USD 200 million (JPY 21.1 billion), with a global multimanager 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 successful fund launch was achieved despite the global pandemic, illustrating the attractiveness of this defensive sector, characterised by stable income returns and liquidity throughout the property cycle. 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 is a further success for the firm’s Japanese business:

  • JRF II follows the success of JRF I.  
  • This follows the successful final close earlier last year of 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 four-year life.

Savills IM has originated, invested and transacted over USD 6 billion in the Japanese market since 2014. The team has been together and active in the Tokyo market for over 20 years.

Alex Jeffrey, Global Chief Executive, Savills IM, commented: 

“The launch of Japan Residential Fund II is a further indication of the trust investors have in our local fund teams, and in particular our Japanese business where our Japan team has a 20-year track record. We are delighted to have been able to achieve a first close, despite the challenging COVID-19 market backdrop, and especially to have a quality institutional book of further demand and underpinned by such an excellent cornerstone investor.” 

Tadaaki Kurozumi and Tom Silecchia, Co-Heads of Japan, Savills IM, added: 

“The defensive nature of low-risk assets such as Greater Tokyo multifamily strikes a strong chord with investors during these times of global uncertainty. We are grateful for the trust of such investor institutions and believe we can scale the Japan Residential Fund II into another flagship vehicle, capable of deploying capital quickly while continuing to provide investors with outperformance.” 

 

 

 

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