SEB Asset Management has acquired a residential property in Tokyo for SEB Asian Property Fund SICAV-FIS, its real estate special fund that invests in Asia.
The Class A-rated Pacific Tower Atagoyama is located in the Minato district, one of the capital's five central districts. The seller of the 30-story residential property is a private fund management by Pacific Holdings Group, which also manages the Nippon Residential Investment REIT, one of Japan's largest listed residential property stock corporations. The parties agreed not to disclose the price.
The property is a luxury residential building built in 2007 with gross rental space of approximately 8,400 m². Pacific Tower Atagoyama contains 165 residential units of various sizes (from 25 m² to 99 m²) and 47 parking spaces. Particular highlights are the view of the famous Tokyo Tower, the fully fitted designer bathrooms and kitchens and the English speaking concierge service. The property is 80% let, and this figure is set to rise to 95% by the spring.
Minato is one of Japan's most densely populated areas with more than 900,000 commuters and it is very popular with both the Japanese and expatriates. "Increasing demand for compact, high-quality residential properties in Tokyo is a key argument in this property's favour," explains Choy-Soon Chua, who is responsible for real estate investments at SEB Asset Management. The population of the greater Tokyo area is increasing by approximately 100,000 people a year. Single people and couples in particular are searching for residential properties. "Rental price trends in this segment are extremely stable", explains Chua.
The SEB Asian Property Fund (LU0304382566) takes the legal form of a Luxembourg SICAV and is aimed exclusively at institutional investors. The Fund is still in the investment stage, while the target properties will be in the core to value-added spectrum. The new addition brings the total number of properties in the portfolio to five, located in Shanghai, Singapore and Tokyo.
Source: SEB Asset Management