June 14, 2023
Proprium Capital Partners launches Japanese multifamily venture
Hong Kong—Proprium Capital Partners today announced that it has entered into definitive agreements to establish a multifamily property investment venture with Manulife Investment Management (Manulife) and Mubadala Investment Company (Mubadala). The venture will partner with Samurai Capital (Samurai), a leading asset manager with significant experience in managing multifamily assets in Japan, and intends to assemble a portfolio worth up to JPY 80 billion (approximately US$600 million).
The joint venture was seeded with existing rental multifamily properties in Japan and will seek to acquire additional assets. Targeting urban dwellers in Tokyo and Osaka, the seed assets are high-quality stabilized properties with convenient access to railway stations and nearby neighborhood amenities.
We believe sustainability will form a core focus of the venture, from the construction stage through to tenant engagement schemes, to reduce the carbon footprint of the properties. The objective of the partnership is to acquire assets that deliver affordable and high-quality living spaces for tenants and attractive and sustainable returns for shareholders.
The establishment of the venture reflects the confidence of Proprium and its partners in the resilient nature and strong growth potential of Japan’s multifamily property sector.
Thomas Wong, partner at Proprium Capital Partners, commented: “We are excited to partner with two highly respected institutions to extend our global living strategy from Europe, Australia, and China to Japan. We believe that these properties will outperform the market and generate positive returns for our investors. Through the collaboration between Proprium and our co-investors, we look forward to scaling up in the Japan multifamily sector.”
Kenneth Tsang, senior managing director and head of real estate asset management, Asia, for Manulife Investment Management, said, “Our investment in this venture provides us with a further footprint in Japan and the multifamily sector, which remains our favorable asset class globally. We believe the partnership will help us accelerate our growth plans and strengthen our competitive market position not only in Japan but also globally.”
Matthias Neuling, head of Asia and DACH real estate for Mubadala, added, “Mubadala takes pride in investments that unlock value for stakeholders and benefit communities. Japan’s multifamily property sector has proven to be resilient and stable, offering attractive risk-adjusted returns with significant future growth potential. Japan is a key strategic market for Mubadala, and we look forward to working with our partners to create long-term value and deliver sustainable high-quality living spaces for communities across the country.”
Ken Aoyama, president and CEO of Samurai Capital, said, “We are excited to work with leading global firms to invest into the Japanese multifamily sector and are pleased to provide our capability, experience, and network in the Japanese residential sector for the fund’s success.”