Secured Capital, a property investment management company affiliated with the US bank Wells Fargo, has raised $535 million from international investors to invest in the Japanese property market in a sign of renewed appetite for real-estate opportunities in the world’s second-largest economy, according to Bloomberg.

Secured Capital Japan, which has ¥600 billion ($6.3 billion) in assets under management, said its fourth Japanese real-estate fund could allocate 25 per cent of its funds to distressed debt in Japan and up to 30 per cent for other Asian markets, according to the news service.

The fundraising comes amid tentative signs of stabilisation in the Japanese real-estate market following a sharp downturn triggered by the turmoil in global financial markets.

The news service said that Japan’s publicly traded real estate investment trusts, which have suffered a plunge in their market values, are seeing a return of investor support. The Tokyo Stock Exchange’s J-Reit index has recovered 42 per cent from its bottom in late October.