Japan's Daido Life targets US real estate

The $64bn Daido Life Insurance Company is eyeing the US real estate and credit markets owing to "opportunities" it said were created by the recent market downturn.

Japanese insurance companies are turning a keen eye on investment opportunities in overseas real estate markets, such as the US.

The $64 billion Daido Life Insurance Company, part of Tokyo-based insurer T&D Holdings, is targeting real estate and securities investments abroad, with a particular focus on the US.

Akio Shinju, Daido general manager of investment planning, told Bloomberg it was also targeting bank and mezzanine loans and other credit securities. “We began looking at overseas investments, especially credit-related products, and with the recent move in the market, they are starting to provide some opportunities,” he said. Such investments could eventually total about ¥100 billion ($1 billion; €803 million), he added.

Shinju said in the report the investments would be part of Daido’s alternative investments scheme, on top of its investments in private equity and hedge funds. Daido’s private equity investments and distressed assets totaled about ¥160 billion as at the end of September, with about ¥140 billion committed and still to be invested.