(Bloomberg) – Brookfield Asset Management Limited says it plans to increase its real estate investments in Japan after purchasing a stake in the landmark Tokyo Hotel and a large tract of land for a logistics development worth a total of $1.6 billion. I did.
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The Canadian investment company has taken a stake in Gadjoen, a complex in the Japanese capital and LaSalle Investment Management owned by China Investment Corporation. It also acquired 1 million square feet of land near Japan’s manufacturing center in Nagoya to develop a large-scale warehouse. The two transactions closed at the end of 2024.
The investment highlights a trend of increased foreign investor activity in Japanese real estate in recent years, supported by a weak yen and cheap financing. A resurgence of inflation after 30 years and a domestic tourism boom also made certain assets, such as hotels and apartments, more attractive.
“You’ll see us doing a lot more in Japan,” Andrew Belich, managing partner and head of East Asia real estate at Brookfield, said in an interview. “Our pipeline is pretty good going into 2025.”
Brookfield is likely to spend more on deals in the country this year than the $1.6 billion it invested in 2024, Burych said. The company is evaluating potential deals worth between $50 million and about $1 billion, with a focus on logistics, mixed-use facilities and hospitality assets, he said.
Burych added that he also saw opportunities to do business with public real estate investment trusts that are below book value, as well as private REITs whose shareholders may have liquidity needs.
The volume of investment in real estate in Japan was estimated to increase 40% year-on-year in the first nine months of 2024 to reach 5 trillion yen ($32 billion) annually, according to Jones Lang Lasalle Inc. By both domestic and international investors in 2025.
Brookfield has four real estate investment professionals in its Tokyo office and people in other locations such as China and Singapore working on Japanese deals, Blaich said.
While the Gajoen purchase was made on Brookfield’s balance sheet, the $1 trillion asset manager said the Nagoya-area land acquisition is being made through Brookfield’s global opportunistic strategy.
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