AXA IM Alts has acquired a portfolio of two residential assets in Osaka, Japan, from PGIM Real Estate Japan, the asset management arm of American life insurance company Prudential Financial, for ¥10.6 billion (c.€82 million). The acquisition, made on behalf of clients and through AXA IM Alts’ market leading Real Assets platform represents the business’ 4th investment in Japan this year.
The portfolio consists of two well-located residential buildings offering a total of 346 studio to four-bedroom apartments for the rental market. The first property, located in the Nishi Umeda district of Osaka, contains 214 apartments with a total lettable area of c. 10,000 sqm. Known as Zeus Nishi Umeda, the high-specification asset boasts bespoke interior design, a 70-space car park and presents a range of floor plans which support a diverse tenant base. Nishi Umeda is an affluent residential area just 1km from Osaka’s CBD. It benefits from easy access to the city’s thriving retail hub of Shinsaibashi, as well as the key office districts of Umeda, Honmachi and Yodoyabashi new subway station that will deliver city-wide access to commuters is scheduled to open in 2031.
The second asset, Serenite Esaka, comprises 132 prime studio and one-bedroom apartments as well as four fully-let retail units, spread across c. 4,000 sqm of space. Serenite is just a three-minute walk from Esaka subway station, which provides direct access to Osaka’s main commercial districts, as well as connecting to a bullet train station with national rail links, making the area popular with frequent travellers.
Osaka has the second highest GDP of any Japanese city (c.¥39 trillion or c.€300 billion) and a population of 8.9 million. The city has attracted a number of major global businesses and is a renowned hub for commerce and innovation. Osaka has experienced steady population growth over the past two decades, supporting residential occupancy levels of over 90% since 2008. A number of ambitious infrastructure projects, including a new subway line, are in the pipeline and are expected to support the city’s continued economic growth in the years to come.
Source : Company