IDERA attracts $50m from Sparinvest for Japan resi venture

The recent merger between Atlas Partners Japan and MK Capital Management Corporation hopes to double its equity haul to $100 million following a seed commitment by the Copenhagen-based fund of funds manager.

IDERA Capital Management, a recently formed boutique real estate asset and fund management firm based in Tokyo, has received $50 million of equity backing from Copenhagen-based fund of funds manager Sparinvest Property Investors for an urban residential property vehicle.

IDERA, which was formed from a merger between two managers, Atlas Partners Japan and MK Capital Management Corporation, announced today it formed a partnership with Sparinvest to acquire properties across Japan’s major cities.

The partnership has started with the acquisition of four properties in Nagoya. It further stated it plans to “at a minimum” double the size of its investments, inferring that with capital commitments from other investors, the vehicle could reach $100 million of equity.

The partnership will seek assets able to offer “decent” cash flows and has stapled a mid-teens return target on its outlays.

Miki Hirai, chairman of IDERA, said the partnership should be the first of many investment products launched by the firm to entice investors to return to investing in Japanese real estate. He said the Japanese real estate market should benefit from government stimulus measures introduced recently.

He said: “Beginning with this program, we are excited about the prospect of IDERA being able to bring to the market a wide range of investment products to meet the demands of foreign investors who wish to re-enter the second largest real estate market of the world at such opportune time when the new Abe administration has instituted clear directions and policies for the eventual growth of Japan’s economy, which are foreseen to deliver positive impacts on the real estate market.”

Marko Multas, partner of Sparinvest said: “We are pleased to establish this cooperation with IDERA and feel very comfortable investing with this recently merged platform.”

“The acquired portfolio is a good proof of IDERA’s acquisition capability and strategic eye; the attractive pricing and strong cash return of these assets balance the concerns that some hawks paint on the Japanese economy.”