The Carlyle Group is reportedly looking to close on property deals in India and Japan, two years after raising $410 million for its first Asia-focused property fund.
The buyout firm’s head of Asia property investment, Jason Lee, told Reuters Carlyle plans to make inroads into the Indian market this year by partnering with local developers and focusing on investments in the residential sector of second-tier cities such as Chennai, Pune and Hyderabad.
In Japan, Carlyle is targeting the senior housing market with an eye toward the country’s aging population, Lee said. That would involve partnering with an affiliate of Tokio Marine & Nichido Fire Insurance Company to buy and redevelop senior housing buildings. The firm could also buy underperforming REITS in the country, according to the report.
Carlyle has already made several investments in Japan. Last year, in a joint venture with real estate management firm SOW, the buyout firm acquired the 215,703-square-foot Omuta Rex shopping center in Omuta-City, located in the Fukuoka prefecture of Japan. The Carlyle-SOW joint venture, established in 2006 to invest in mid-sized retail centers in the regional cities of Japan, has already acquired five shopping centers with a total purchase price of more than 12 billion yen ($103 million, €73 million).
In 2005, Carlyle raised $410 million (€290 million) for its first Asia-focused property fund, Carlyle Asia Real Estate Partners. The vehicle had a total estimated buying power of $1.5 billion and is targeting China, Japan and India.