Daiwa Securities Group is teaming up with Osaka-based developer Samty Holdings and global investment firm Hillhouse Investment to launch a ¥100 billion (US$883 million) real estate fund. The private vehicle will target both domestic and international institutional investors, according to Masatsugu Oishi, Daiwa’s general manager of asset management strategy.
The fund will focus on Japanese rental housing and hotel assets, which are seen as more resilient to inflation. With consumer prices climbing at their fastest pace in decades, these segments are increasingly attractive to investors.
Despite a dip in Tokyo’s new condominium prices in 2024—the first decline in six years—market sentiment remains strong. Analysts expect prices to rebound due to limited supply and rising construction costs.
This initiative is part of Daiwa’s broader push to grow its asset management business, which offers more consistent earnings amid declining brokerage volumes in an aging Japan. The firm plans to expand beyond its existing exposure to REITs and private real estate trusts, targeting a 25% increase in real estate AUM by fiscal 2030, bringing it to ¥2 trillion.
“Expanding our holdings will enhance profitability and raise corporate value,” said Oishi.
Samty, which operates rental apartments, was taken private by Hillhouse earlier this year, with Daiwa retaining its equity stake. The trio plans to combine Samty’s operational expertise with Hillhouse’s global fundraising reach to build a stronger asset management platform.
Hillhouse, a major alternative investment firm founded in 2005 with backing from the Yale University Endowment, manages capital on behalf of top institutional investors globally. In 2020, it committed US$3.5 billion to real estate strategies across Asia, deepening its presence in the sector.
Source: Business Times
