Cushman & Wakefield, the world's largest privately held real estate services firm, announced yesterday (August 18, 2009) that it has acquired Pacific Investment Corporation, the private fund asset management subsidiary of Japanese real estate fund giant Pacific Holdings Group. With immediate effect the firm will begin operations as Cushman & Wakefield Asset Management KK.
Pacific Investment Corporation was the asset management arm of Pacific Holdings, formerly the second largest investment firm in terms of assets under management in Tokyo, and currently manages approximately US $2 billion of assets totaling 4.73 million ft² (approx. 400,000 m²) of office, retail and residential properties.
"This is an important strategic acquisition for us as it is consistent with Cushman & Wakefield's vision to strengthen and expand our services to clients in core 'flagship' markets" commented Michael Thompson, CEO of Cushman & Wakefield's Asia Pacific operations. "Given the importance of the Japanese economy both regionally and globally we have targeted accelerated growth in this market and this acquisition now provides us with a base to expand our asset management services within Japan and eventually regionally".
Through this new operation, Cushman & Wakefield will offer clients a market-leading platform to source investment opportunities as well as provide acquisition, strategic portfolio planning, asset management and disposition services in the mature and sophisticated Japanese real estate market.
"This enhancement of our service platform in Japan represents a significant step forward for our clients," commented Todd Olson, Managing Director for Cushman & Wakefield operations in Japan. "The Pacific Investment Corporation team of 35 experienced professionals significantly strengthens Cushman & Wakefield's existing capabilities in Japan and we anticipate further significant staff growth as we expand our client base in Japan."
Pacific Investment Corporation's President, Mr. Akira Yamanouchi, (who served previously as President of Nippon Residential Investment Corporation (NRIC) J-REIT and is highly respected in the Japan real estate market has been named as the new Executive Director of the new entity which has been renamed as Cushman & Wakefield Asset Management KK. Commenting on the acquisition of his company by Cushman & Wakefield, Mr. Yamanouchi said "I feel privileged to be a part of Cushman & Wakefield. Our clients (including several major institutional investors) for whom we manage US $2 billion of assets in Tokyo, and their lenders (including several leading domestic banks) have enthusiastically welcomed this acquisition."
Representative Director and head of the new entity's parent company (Cushman & Wakefield Investment Advisors K.K.), Mr. Yoshiyuki Tanaka highlighted the opportunities that exist in the Japanese market, "With the ongoing loss of credibility by many existing asset management firms in the market, there is a large demand from financiers for objective and professional asset management services. Combined with the financial stability, global network, and Cushman & Wakefield's reputation as the most trusted brand, our new asset management company has the local in-depth experience and is in a market-leading position to capitalize on this opportunity and rapidly increase market share extending our services to both Japanese and international investors in the Japan market."
Source: Cushman & Wakefield