SuMi Trust, Aberdeen Standard Investments Form Asian Real Estate JV

Tom Burroughes

5 June 2019

are building a joint venture to invest in residential real estate in Japan and other mature markets across Asia-Pacific.

The JV involves co-investment and co-management by ASI and SuMi TRUST’s subsidiary Sumitomo Mitsui Trust Real Estate Investment Management Co. The venture will target investments in residential assets such as multi-family, senior housing, student housing and corporate housing in mature markets in the Asia-Pacific region, primarily focusing on Japan.

The firms said the JV intends to “enhance capital and income through acquiring newly-constructed properties on a forward commitment basis, as well as older residential properties which have the potential to be renovated, repositioned or converted”.

Explaining the rationale for the JV, the firms said urbanisation in Japan gives “structural underpinning” to its approach, highlighted by “significant” rental and yield gaps between new and older buildings.

Environmental, social and governance factors will be embedded into the investment process – a sign of how ESG approaches continue to expand across the wealth and asset management sector.

“The joint venture is an important step in expanding our global investment offering, as we continue to address investors’ need for alpha and diversified return,” David Paine, global co-head of real estate, Aberdeen Standard Investments, said.