EXCLUSIVE: Cordea Savills launches debut Japan fund

Having now integrated Tokyo-based real estate investment management business Merchant Capital, the London-based firm is set to tap up investors for its first fund targeting the country.

Cordea Savills, the real estate investment management business of property services firm Savills, has started fundraising for its first Japan-focused real estate fund, PERE can reveal.

The firm would not discuss the capital raising owing to regulatory constraints, however it is understood to be seeking up to $200 million for the vehicle, the Cordea Savills Greater Tokyo Office Fund. A first closing is anticipated in the first half of next year.

The capital is being raised for a value-added investment strategy and Cordea Savills hopes to generate IRRs net to investors of between 13 percent and 15 percent.

The strategy for the fund is Tokyo-centric however it is understood that a proportion, possibly as much as 30 percent could be invested elsewhere in the country.

The fund would be run by the former Merchant Capital team, led by Tom Silecchia and Tadaaki Kurozumi. Merchant Capital's business was acquired by Cordea Savills last year as part of an expansion effort in Asia.

Since the integration of the six-staff platform, the firm has been transacting on a deal by deal basis, including the acquisition of an office in Yokohama in a deal valued at about ¥24 billion (€176 million; $224 million).

It is thought that deals like this have formed some part in Cordea Savills’ marketing campaign for the fund which already has been taken to Asian investors and will soon be taken to European investors as well.

Cordea Savills also today announced how it has expanded its reach in Asia with the hire of Jin Guo as its head of greater China. Guo will be based in Hong Kong and will primarily be focused on advising Chinese investors on their real estate strategies. He previously was at ICBC International Investment, an investment arm of ICBC, the Chinese bank.