abrdn expands real estate investment business in Japan

abrdn plc (`abrdn’), a global investment company, today announced the expansion of its real estate investment business in Japan through its subsidiary, abrdn Japan Limited (‘abrdn Japan’). This strategic move comes as abrdn commences a new investment mandate to manage a residential portfolio in Japan.

The investment mandate is managed by abrdn Japan for Dutch pension investor PGGM. In alignment with this expansion, abrdn Japan has appointed Harumi Kadono as Head of Japan Real Estate.

Ken Yajima, Chief Executive Officer of abrdn Japan, 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 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."

Ronald Bausch, Senior Director at PGGM private real estate expressed enthusiasm about the collaboration, stating: “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 has the potential to generate long-term value for its customers. This could 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."

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.

Anne Breen, Global Head of Real Estate, said: “Amidst evolving policy and economic landscapes, the Asia Pacific market presents a range of new 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.”

As an active participant in the global real estate market for over 50 years, abrdn has extensive experience in managing direct and indirect real estate investments, real estate multimanager services, listed real estate, and real estate debt solutions. As of 30 June 2024, abrdn managed £35 billion in real estate assets and around 1,000 properties globally.