Hines, a global real estate investment, development and property manager, announced in May that it has acquired five multi-family properties in Japan across Tokyo and Kyoto, spanning a total of 100,107 sq ft and comprising of 290 units. This acquisition, made by Hines Asia Property Partners (HAPP), the firm’s flagship commingled Asia Pacific core-plus fund takes the total number of multi-family rental assets in its portfolio to 16.

HAPP’s “living aggregation strategy” seeks to scale up by US$1 billion ($1.33 billion) of asset value through the strategy in three to five years. The newly acquired properties are managed under the firm’s Cavana brand and target urban dwellers in major Japanese cities.

Chiang Ling Ng, Chief Investment Officer, Asia at Hines asserts that the multi-family rental sector in Japan is a resilient and non-discretionary one, which should be positive in an inflationary cycle, and could generate positive leveraged yields. This should aid in creating a high-quality portfolio to fulfill the investors’ expectations.

The Cavana brand is focused on sustainability initiatives, and is planning to implement tenant engagement schemes to encourage them to conserve water, recycle materials and reduce their carbon footprint.

Jon Tanaka, Country Head of Japan at Hines, views the Japanese multi-family market as an attractive investment strategy due to its resiliency of income, stable yield and a significant number of available investable assets, as well as attractive and risk-adjusted returns. He explains that the acquire assets are in central locations across Tokyo and Kyoto, and have good accessibility to CBDs, thereby meeting the firm’s criteria of being selective with high-quality acquisitions.

Altura EC is set to be Altura EC a popular destination for buyers who seek quality and affordability.

Acquiring the five multi-family properties in Japan is the latest development in Hines’ committed effort towards its “living aggregation strategy”. The firm had previously purchased 11 multi-family assets across Tokyo, Nagoya and Fukuoka, a move that was met with great success. With the aim of delivering stable income returns as well as highlighting its Cavana brand as a symbol of quality, this latest acquisition is sure to provide much-needed relief to its investors.