The launch of the first private fund dedicated to Japanese real estate
TOKYO, May 9, 2022 /PRNewswire/ — Ascot Corp. (headquartered in Shibuya-ku, Tokyo, Japan; hereinafter “Ascot”) has established the first private fund (hereinafter “the Fund”) through a joint venture with global institutional investors to invest in MF residential communities, senior housing communities and student residences Tokyo metropolitan area.
1. Main investment objects of the fund
“ASTILE” is MF’s home brand that has won the Good Design Award twice in the past year, and “FARE” is the brand that has won the award seven times for five consecutive years.
*The Good Design Award is the only comprehensive design rating and recommendation system Japan covering a wide range of industrial products, business models and event activities.
2. Overview of the fund and strategy
The Fund’s investment objectives are MF residential complexes, senior housing complexes and student housing and its locations are restricted to Tokyo Metropolitan area where stable cash flows are expected with low impact from the Covid-19 pandemic and high liquidity on exit and consequently stable investment results. In addition, the investment risks can be identified to a limited extent and quantitatively due to the predefined properties.
Fund #1’s portfolio includes 9 properties, mainly MF residential properties developed by Ascot (including ASTILE Harajuku and ASTILE Nishi-Shinjuku II, etc.). In the near future, Ascot plans to expand the scope of its fund in collaboration with global institutional investors by acquiring MF residential complexes, senior housing complexes and student housing from external developers and funds in addition to the properties developed by Ascot. Ascot manages these properties as asset manager of the fund.
3. The growth strategy of the real estate fund business
Established in 2021, the Real Estate Funds business is a new business unit of Ascot, leveraging the company’s design and quality property development capabilities and national and international network built over the last 20 years since Ascot was founded in 1999. As one of the most important pillars of our medium-term growth strategy, we aim to further expand our business by establishing joint venture funds with domestic and foreign investors and new private funds, as well as entering into REITs and other businesses.
In addition to MF Residential and Offices, which are our strengths, we will target a wide range of asset classes including logistics, hotels, senior housing, data centers etc. We are also considering entering some development stage asset classes.
The fund operations division will contribute to the growth of the real estate investment market by continuously providing optimal solutions and quality investment opportunities to a wide range of investors, while expanding the total assets under management.
Executive Officer / Head of Real Estate Fund Business Department
Main career summaryj
He joined Ascot July 2021 as Executive Officer, Head of Real Estate Fund Business Department.
Before joining Ascot, he worked at Mitsui Trust & Banking (currently Sumitomo Mitsui Trust & Banking, (SMTB)) in the funds and foreign exchange department, new York Branch Office and Asset Financing Department.
After working at SMTB, he joined GE Real Estate (currently GE Japan) in 2004, where he was Head of Business Development, responsible for acquisitions, M&A and structured finance.
In 2010, as Head of Asset Management, he was responsible for the asset management of around 600 properties with a total value of approx 600 billion yen in Asia Pacific and Japan.
In 2016 he joined the Savills Japan Asset Management team and as Head of Acquisitions was responsible for the acquisitions and acquired properties worth more than 100 billion yen with global institutional investors.
He has over 25 years of extensive real estate investment, real estate finance and international experience in the real estate investment industry and has held senior positions in various areas of the real estate business.
He has an MBA from Hitotsubashi University Graduate School of International Corporate Strategy (ICS).
Against the background of limited investment opportunities in the context of low interest rate policies and the globalization trend of capital investment, there has been a shift in allocations from traditional assets such as listed shares and bonds to alternative investments, with real estate investments in particular having gained importance worldwide in recent years.
As a global asset allocation strategy, a certain percentage has been shifted Asia, and compared to other Asian countries, investments in Japanese real estate have been allocated as core investments to a significant extent. The main factor is that Japan’s The low interest rate policy has created a relatively large yield gap. Secondly, Japancentered on Tokyo, has a significant market size that offers high liquidity upon exit. In addition, the infrastructure for investments such as legal, accounting and tax is very stable. Stable returns are therefore expected to be secured. Consequently, investment needs and cash flows from global investors, particularly institutional investors, into Japanese real estate have continued even during the COVID-19 pandemic, and the recent depreciation of the Japanese yen has also brought investors’ attention to Japanese real estate.
The asset classes that receive a lot of attention are logistics and MF housing. As Ascot has an advantage in the longstanding residential development business, the first fund focused on residential real estate.
5. Comments by Takeshi NakabayashiPresident of Ping An Japan Investment Co, Ltd.
Ascot Corp. is the first real estate company in Japan Invested by Ping An Group. We are fascinated by Ascot’s excellent development record, backed by its ability to design and deliver high value-added residential and office properties. We have high expectations for the growth of Ascot’s new global business, including the just launched property fund administration business, the development of logistics facilities and integrated services from property brokerage to property management for global investors.
6. About Ascot Corp.
Ascot is a global, full-service real estate services provider with a dedicated real estate focus Tokyo metropolitan area. The business includes MF residential development and logistics, fund management, property brokerage for global investors and property management leveraged through its design and quality property development skills and national and international network. His design and development expertise, cultivated over the past 20 years, is highly recognized, as evidenced by his track record of winning a total of 14 Good Design Awards. Through the digital transformation, Ascot aims to offer high quality real estate services in line with global standards by improving customer contact and creating new revenue models.
Stock price number: 3264 (JPX standard)
Address: Daiwa Aoyama Bldg. 5F, 3-1-30 Jingumae, Shibuya-ku, Tokyo, Japan
Furnishings: April 1999
President of the Board of Directors: Yiwen Luo
Capital city: 10,867 million yen
Description of the store:
- Real estate development business: rental apartments, condominiums, office buildings, logistics facilities
- Real estate fund business: fund management, asset management
- Real estate solutions business: real estate appreciation, real estate consulting, real estate brokerage
- Other shops
- PING AN INSURANCE COMPANY (GROUP) OF CHINAGMBH
- SBI Holdings, Inc.
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SOURCE ASCOT CORP.