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Deal with Sumitomo Mitsui

Aberdeen Standard Investments in Asia real estate JV

David PaineAberdeen Standard Investments and Sumitomo Mitsui Trust Bank have announced a joint venture that will invest in residential real estate in Japan and other mature markets across Asia Pacific. 

The joint venture aims to deliver what it calls “a compelling Asia Pacific real estate strategy for investors”.  It will acquire newly-constructed properties, as well as older residential properties which have the potential to be renovated, repositioned or converted. 

Edinburgh-based Aberdeen Standard Investments is Europe’s second largest real estate investment manager, managing £40 billion of real estate assets across UK, Europe and Asia Pacific.

There is a trend towards urbanisation in Japan, especially in the largest cities and the joint venture notes significant rental and yield gaps between new and older buildings.  Similar trends amongst the Asia Pacific region’s largest cities will support its residential real estate investments beyond Japan.  

The investments aim to embed environmental, social and governance (ESG) factors into the investment process.

David Paine, global co-head of real estate at Aberdeen Standard Investments, said: “The joint venture is an important step in expanding our global investment offering, as we continue to address investors’ need for alpha and diversified return. We are pleased to partner with Sumitomo Mitsui Trust Bank to bring a new Japan-focused real estate strategy to clients, and look forward to building out this relationship.” 

Kengo Noguchi, senior managing executive officer at Sumitomo Mitsui Trust Bank, said: “We are confident in a successful partnership building on our strong capabilities in real estate brokerage and asset management.”

Kang Puay Ju, head of real estate Asia Pacific and global head of real estate multi-manager at Aberdeen Standard Investments, said: “Over the next decade cities in the Asian Pacific region are set to experience very strong growth, fuelled by both domestic and foreign immigration to major metropolises, which bode well for housing demand over the medium-term.”

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