LaSalle Investment Management has acquired 10 more properties in Japan for 35 billion yen (US$321 million). The latest acquisitions bring the total assets under management of its flagship open-end private core fund, LaSalle Japan Property Fund (LJPF), to more than 157 billion yen (US$1.44 billion) in gross asset value.

The 10 properties include one large-scale logistics facility located in the Osaka metropolitan area and nine high-quality multifamily properties in the Tokyo metropolitan area, bringing LJPF’s portfolio to 16 properties.

Despite the ongoing pandemic, the equity offering was buoyed by a strong appetite for investment in domestic real estate from a wide range of domestic investors. Subscriptions made by major institutional investors, financial institutions, pension funds and operating companies substantially exceeded the expected offering amount to fund the purchase. In addition, LJPF is supported by major lenders in Japan, including syndicate loans from Japan’s megabanks, government-affiliated financial institutions, and life insurance companies.

Launched in November 2019 with an investment of 61 billion yen, LJPF invests in four major asset classes – logistics, residential, retail and offices – in four major metropolitan areas, namely Tokyo, Osaka, Nagoya and Fukuoka.

The 16 properties in the LJPF portfolio have all been selected through LaSalle’s proprietary research and strategy framework, which incorporates all the elements of LaSalle’s DTU+E themes, namely demographic, technology, urbanization and environmental change.

Demand for residential properties in Tokyo, Osaka and Nagoya, the three largest metropolitan areas in Japan, is expected to remain stable in the post-Covid era because of the employment opportunities, along with high-quality education and healthcare services. These areas also offer a rich array of excellent urban amenities.

Keith Fujii, LaSalle head for Asia-Pacific, says: “These are attractive, well-located quality assets that diversify the portfolio and will provide a steady income. In Tokyo, despite the pandemic, we are seeing relatively stable wages and tight labour markets, which will continue to support the multifamily sector. In the logistics sector, positive real estate fundamentals, continued e-commerce penetration, and our ability to execute successfully are the reasons why we find this sector desirable.”