Edinburgh-based asset management giant Abrdn plc has announced the expansion of its real estate investment business in Japan through its subsidiary, Abrdn Japan Limited.
Abrdn’s strategic move comes as it commences a new investment mandate for Dutch pension investor PGGM to manage a residential portfolio in Japan.
The new mandate from PGGM involves operating 3,300 rental homes – most of which are in greater Tokyo.
With this expansion, Abrdn Japan has appointed Harumi Kadono as Head of Japan Real Estate.
Abrdn manages about £35 billion in real estate assets and manages and administers a total of £506 billion of assets for clients.
Abrdn Japan CEO Ken Yajima said: “The Japanese market is pivotal to Abrdn’s global business strategy.
“We are deeply committed to this market and continuously strengthen our local team to offer superior services and innovative investment solutions to both Japanese investors and those looking to invest in Japan.
“This expansion underlines our ambition to excel in the Japanese real estate market.”
Anne Breen, Abrdn’s Global Head of Real Estate, said: “Amidst evolving policy and economic landscapes, the Asia Pacific market presents a rich tapestry of investment opportunities.
“Japan’s residential sector, in particular, stands out due to its robust occupier demand and defensive attributes, continuing to draw significant capital from global investors.
“This expansion underscores our commitment to enhancing our real estate capabilities globally and across diverse segments. We are dedicated to building up our team in Japan and throughout the region, aiming to capitalize on these investment opportunities.”
Ronald Bausch, Senior Director at PGGM private real estate, said: “We are very happy to further expand the global relationship that we already have had for years with Abrdn.
“This allows us to act upon opportunities throughout the region more efficiently. We look forward to leveraging abrdn’s global knowledge on sustainability which generates long-term value for its customers.
“This will help us to generate good financial returns while improving on our sustainability targets which are set by our client PFZW, the Dutch pension scheme for the healthcare sector.”
Abrdn said: “The timing of Abrdn’s expansion coincides with the initiation of the US Federal Reserve’s monetary easing cycle.
“Global real estate, as an asset class, is likely to gain from the lower interest rate environment, while the Japan residential market is further supported by the robust fundamentals of the Japanese economy and substantial local demand.”