Amount of 131 billion yen ($ 885 million) raised by Morgan Stanley For an investment capital real estate Emphasizing in Japan, surpassing its target thanks to demand for investors, including the country’s largest pension fund.
The US bank had initially sought to raise 75 billion yen for real estate capital, which will be managed by Morgan Stanley Real Estate Investing, according to Bloomberg.
The Fund will seek to invest in the areas of residential, office and industrial real estate in Tokyo, Osaka and other important domestic markets. Japan’s Pension Government Fund has announced plans for a 10 billion yen contribution over 10 years. Other investors include Japanese financial institutions and foreign government investment funds. A spokesman for Morgan Stanley refused to comment.
Investors’ interest in real estate in Japan is increasing due to factors such as low association with traditional assets such as shares and bonds, as well as resilience to inflation. Private property assets increased by 17% compared to the previous year, reaching 40.8 trillion yen last December, according to a survey by Sumitomo Mitsui Trust Research Institute.
In recent years, the Japanese real estate market has attracted investors, as prices have been increasing after years of deflation and financial costs remain relatively low. The market for office real estate remains durable as employees return to their offices after the pandemic, while the hospitality sector benefits from tourism.