AVIVA Plc's Morley Fund Management Ltd will invest US$10 billion in property in Asia over the next four years.
Half of that will be put into Japan where land prices are increasing for the first time since 1991, Bloomberg News reported. China is also a major part of the equation.
Morley, which had about US$60 billion of real estate assets worldwide at the end of 2006, formed a US$500 million joint venture with Mitsubishi UFJ Trust and Banking Corp to invest in Japanese property, said Ian Womack, head of property at Morley. Mitsubishi UFJ, a unit of Japan's largest bank, will advise Morley on the purchase, sale and management of properties.
"We have a gap in Asia which we are now filling," Womack said yesterday at a news conference in Tokyo. "It is the right time to be investing in Japanese property for our clients, and we are looking for compelling investment opportunities across Japan."
International investors are turning to Asia's real estate market, seeking diversification and a balanced return. LaSalle Investment Management, a unit of the world's second-largest commercial real estate broker, said on March 20 it plans to raise at least US$3 billion this year to invest in Asia.
"They are not looking to hit the jackpot, but they are looking for good diversification and strong market fundamentals and steady yield," said Alec Menikoff, managing director of K.K. Halifax Asset Management based in Tokyo. "The challenge is to place the money well: Being able to identify good opportunities and close deals."
Average land prices in Japan increased in 2006 for the first time in 16 years, attracting investment from companies like Aviva, the United Kingdom's biggest insurer.
Yesterday's announcement came after Morgan Stanley agreed on April 13 to buy All Nippon Airways Co's 13 Japanese hotels for US$2.4 billion in what is Japan's largest real estate acquisition.
Morley, which will focus on office buildings, forecasts total returns of as much as eight percent for its Asian investments, with yields of four percent and rental growth of three to four percent.
Morley has US$2 billion of equity to invest initially, and has allocated half of that to Japan. It is looking to set up partnerships in China, South Korea and India and has already invested US$430 million in the region.
Source:佚名