Axa IM Adds Japan Assets to Portfolio

The acquisition forms part of the firm’s wider long term strategy on behalf of clients to invest in residential asset classes it believes are supported by strong demographic drivers.

Axa Investment Managers (IM) – Real Assets has added to its €20 billion portfolios of residential assets under management spread across 15 countries, with the purchase of a multi-generational and multi-sector residential tower in Nagoya, Japan for ¥20 billion ($186 million).

The newly built Grade A residential tower is located within walking distance of Nagoya’s central business district in a newly redeveloped area. It comprises 430 residential units and 130 co-living units, as well as 66 units comprising a mix of pure residential for the elderly together with care or nursing service options.

Laurent Jacquemin, head of Asia-Pacific at Axa IM – Real Assets, said the deal «proved particularly attractive given the city’s continued investment in improving local infrastructure coupled with its growing population, both of which underpin the potential for us to generate stable income.»

The acquisition is the firm’s fourth residential investment in Nagoya and its 12th in Japan, where it has invested more than ¥16 billion in residential assets on behalf of clients. Its previous deal was also for a residential tower in Nagoya, completed in November.

Axa IM said the Nagoya residential market lacks affordable residential stock for rent that’s suitable for families, while demand is likely to continue to rise in line with robust economic growth and infrastructure investment.