The Tokyo-based real estate investment and asset management firm is planning to create a private equity real estate fund targeting offices and other commercial properties in Japan on behalf of Korean investors.
Tokyo-based real estate investment and asset manager Kenedix Group is putting together a fund for Korean investors aimed at investing in Japanese real estate.
The company announced that three undisclosed Korean institutional investors, pension funds and financial institutions, are to provide the equity to the fund which aims to manage approximately ¥10 billion ($110 million; €90 million) in office and other commercial property assets in Japan. The vehicle is intended to run for five years.
In its announcement, Kenedix said: “Although the fund procurement environment within the real estate and real estate finance industry in which the Group operates is gradually calming following the
instability caused by the turmoil in financial markets, the outlook for the business environment remains uncertain.
“Given this situation, the Company has been aggressively marketing to overseas investors as a means of acquiring new investment funds. As a result, the Group has successfully created a new private real estate fund utilizing capital acquired from Korean institutional investors, including pension funds seeking stable long-term returns, and a non-recourse loan from a major domestic financial institution.”
Kenedix currently manages ¥939.9 billion (€8.4 billion; $10.41 billion) in assets across various funds and J-REITs including the Kenedix Realty Investment Corporation, Japan Logistics Fund and the Challenger Kenedix Japan Trust.