Invista targets Japanese real estate

The listed real estate fund manager has formed a JV with Capital Realty to help it target Japanese real estate acquisitions through its latest fund, Invista Real Estate International. The fund is being run by investment director Hugo Vere.

Invista Real Estate Investment Management has joined forces with Asian asset management firm, Capital Realty, to help it invest in Japanese real estate.

The London-based listed fund manager said in a statement it would work with Capital Realty, which manages properties in Japan, Thailand, Singapore, Malaysia, Taiwan, mainland China and the Philippines, on behalf of its latest and other funds.

Invista launched its Asia-focused Invista Real Estate International Fund in April and has raised more than £50 million ($78.5 million; €62.5 million) as of May. The fund, which is targeting a value-add strategy with IRRs of 15 percent, is led by Invista’s director of international investments, Hugo Vere.

However, chief executive officer Duncan Owen said Asia would be of growing focus to the firm generally. “Through this joint venture, we are set to take advantage of opportunities in Japan and establish our presence in what we regard as an attractive market for investment.”

Private equity real estate firms are increasingly turning towards Japan, not least owing to the distress being seen in the country.

LaSalle Investment Management said it was targeting distressed sellers in Asia, and particularly Japan, for its $3 billion real estate opportunity fund, LaSalle Asia Opportunity Fund III. David Edwards, Asia-Pacific director for LaSalle, said in an interview with Reuters, the Chicago-based firm was hoping to acquire properties at a discount from landlords who over-leveraged themselves and were now being squeezed by a lack of credit.

Merrill Lynch will also be targeting the country with its first Asia fund, the $2.7 billion Merrill Lynch Asian Real Estate Opportunity Fund. Kennedy Wilson, the Los Angeles real estate services and investment firm which is raising a new fund with a target of $1.25 billion, will also look to Japan with a 25 percent allocation to the country.