Composition Capital Partners has concluded two Japanese residential investment deals through its Composition Asia Fund II. The investments have different strategic approaches and provide investors with exposure to two distinct subsectors of the Japanese residential market.
Composition has become a lead investor in a fund targeting a specialized sector of the residential market: senior living. This is a growing and evolving area of the Japanese residential market, which Composition has studied over the past few years. Composition has teamed up with an experienced Japanese real estate manager who has a sole focus on assets in this sector.
In May, the first portfolio acquisition was concluded by a Joint Venture established in 2010 between Composition and a Japanese asset management company. This established Tokyo-based partner specializes in capital restructuring opportunities in existing income-producing residential properties in the greater Tokyo area.
The continuous demand for residential accommodation in the assets targeted has been little affected by the earthquake in March 2011. Ongoing restructuring in the debt markets is leading to interesting opportunities for this strategy.
Composition is committed to the Japanese real estate investment market and sees additional opportunities here which will also be incorporated into Composition's Asia Fund III later this year.
Commenting on this, Asian Fund Director, Bill Shaw, based in Composition's Hong Kong office said, "Japan has been through traumatic events this year, but activity continues in this recovery period. Japan remains one of the world's largest economies offering opportunities in many sectors.
"Composition believes particularly in the opportunities the residential and office markets have to offer going forward; we will be focusing our future efforts in Japan on these sectors. We will continue to adopt our established approach of working with local partners who are very experienced in matters relating to their markets and sectors."
Source: Composition Capital Partners