Move over, NYC and London: Tokyo is the new real estate king

The wealthiest sovereign fund in the world is leading the way for investors

New York Weekend Edition /
Feb.February 10, 2018 03:59 PM

Tokyo train station. (Credit from back: Andy Atzert, Pixabay)

The largest sovereign wealth fund in the world’s property group is betting big on Tokyo real estate.

Norges Bank Real Estate Management, a branch of Norway’s $1 trillion fund, purchased a 70 percent stake in a mixed-used office and retail properties for about $852 million as part of a joint venture with Japanese firm Tokyu Land Corp. The fund has earmarked an annual $912 million for real estate deals in Tokyo provided, of course, “the right opportunities come along,” said CEO Karsten Kallevig to Bloomberg.

The Norwegian investor is not the only one eyeing the Japanese’s market. Over $10 billion poured into the country in 2017 alone — a figure that tripled the amount of foreign real estate investment Japan received in 2016, according to Bloomberg. Deutsche Asset Management explains the increased interest as being partly due to higher yield spreads from domestic government bonds as compared to cities like New York and London.

To Kallevig, Tokyo real estate investment was “obvious.”

“You still have a lot of economic activity, you still have supply constraints that we typically like in most of our markets,” he told Bloomberg. His team set up shop in Japan in 2015. [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)
JLL gets in rental home business
JLL gets in rental home business
Mack-Cali Realty CEO Mahbod Nia and MaryAnne Gilmartin (Photos via Mack-Cali Realty)
Mack-Cali Realty names Mahbod Nia as CEO
Mack-Cali Realty names Mahbod Nia as CEO
(The Denizen, Facebook via Jonathan Braun)
All Year recants allegation against Trump-pardoned drug smuggler
All Year recants allegation against Trump-pardoned drug smuggler
The comedy club argues that if SNL can operate, then they should be allowed to operate too. (Getty)
Manhattan comedy club sues Cuomo over pandemic closures
Manhattan comedy club sues Cuomo over pandemic closures
(iStock)
These were Manhattan’s best office submarkets in Q4
These were Manhattan’s best office submarkets in Q4
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Order up: Real estate investors line up to buy drive-throughs
Order up: Real estate investors line up to buy drive-throughs
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...