Sumitomo Mitsui Trust Bank, Limited (“SuMi TRUST”), a leading trust bank in Japan, and Aberdeen Standard Investments (ASI), a global asset manager, today announced the establishment of a joint venture that will invest in residential real estate in Japan and other mature markets across Asia Pacific.
In Japan SuMi TRUST has a strong presence, significant real estate investment capability, robust nationwide brokerage network and unique access to domestic deal opportunities. Combining this with ASI’s global distribution platform and extensive Asia Pacific real estate fund management and investment expertise, the joint venture aims to deliver a compelling Asia Pacific real estate strategy for investors.
Through co-investment and co-management by ASI and SuMi TRUST’s subsidiary Sumitomo Mitsui Trust Real Estate Investment Management Co., Ltd. (SuMi TREIM), the joint 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.
Adopting a value-added investment strategy, it aims 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.
A continued trend towards urbanisation in Japan, especially the largest cities like Tokyo and Osaka provides the structural underpinning to the joint venture’s strategy, bolstered by significant rental and yield gaps between new and older buildings. Similar trends amongst the Asia Pacific region’s largest cities will support its residential real estate investments beyond Japan.
Environmental, Social and Governance (ESG) factors will be fully embedded into the investment process, with the aim of supporting sustainable social development through ESG-screened investments in Japan.
Kengo Noguchi, Senior Managing Executive Officer, Sumitomo Mitsui Trust Bank, said:
“We are delighted to provide global investors with a Japan-focused real estate strategy jointly with Aberdeen Standard Investments. We are confident in a successful partnership building on our strong capabilities in real estate brokerage and asset management.”
David Paine, Global Co-Head of Real Estate, Aberdeen Standard Investments, said:
“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. We are pleased to partner with Sumitomo Mitsui Trust Bank to bring a new Japan-focused real estate strategy to clients, and look forward to building out this relationship.”
Kang Puay Ju, Head of Real Estate Asia Pacific and Global Head of Real Estate Multi-Manager, Aberdeen Standard Investments, said:
“Over the next decade cities in the Asian Pacific region are set to experience very strong growth, fuelled by both domestic and foreign immigration to major metropolises, which bode well for housing demand over the medium-term.”
About Aberdeen Standard Investments
- Aberdeen Standard Investments is Europe's second largest real estate investment manager, managing US$50.9 billion (£40.0 billion)* of real estate assets across UK, Europe and Asia Pacific.
- Aberdeen Standard Investments is a leading global asset manager dedicated to creating long-term value for our clients, and is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
- With over 1,000 investment professionals we manage US$643.3 billion (£505.1 billion)* of assets worldwide. We have clients in 80 countries supported by 50 relationship offices. This ensures we are close to our clients and the markets in which they invest.
- We are high-conviction; long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance. We are resolute in our commitment to active asset management.
- Aberdeen Standard Investments is the asset management business of Standard Life Aberdeen plc, one of the world’s largest investment companies.
- Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. The Standard Life Aberdeen group was formed by the merger of Standard Life plc and Aberdeen Asset Management PLC on 14 August 2017.
*as at 31 December 2018