Exclusive-Morgan Stanley raising about $680 million for Japan real estate fund, sources say

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By Mihoan and Anthony Bridge

Tokyo (Reuters) -morgan Stanley raises about 100 billion yen ($ 684 million), two familiarity of Japan, highlighting the investor’s interest in property, as the fourth largest economy of the world arises from deflation and termination prices.

Morgan Stanley’s managed fund must end in June and expects at least 100 billion yen to increase by current investment obligations, according to the people, both refused to be recognized. The final size of the foundation can be changed through closing, the people said.

Investments are in the center of offices and apartment building center, as well as one of the logistics and hotels, one of the people said.

Morgan Stanley refused to comment. The details of the foundation are reported here for the first time.

The US firms are the last global asset manager, their sights on Japanese real estate, an asset class that returns to economic growth, flat salary and zero inflation.

The investment case has changed dramatically over the past year, of course, the Central Bank raised interest rates in March last year in March.

Prices, including real estate, are now rising.

“We see a great potential in the introduction of real estate, in inflationary environment,” said Ikushin Tsukhda, director of Brookfield’s active management. “The market dynamics is changing,” he said.

At the same time, the Japanese companies in the corporate governance want to improve the use of capital and sell some property reserves.

World Foundations, such as Asia-Hill Hourhouse Investment, Switow Firm EQT and Warburg Pincus in the United States hire their presence in Japan. The talent competition is fierce, they say the means.

The competition warms up

After the top of the 2020, the introduction of Japanese property has decreased for several years, as interest rates grow in the world according to Sumitomo Mitsui Trust Research Institute.

But the last quarter of last year seemed to be a turning point, with a growing investment by 37% a year, anticipation of a trend Othani expects to continue.

In January, the full integral of the internal private joint stock fund began a real estate fund and raises capital. Integral Real Estate Partner Hirori said that the arrival of raising prices exposed to Japan investors at greater risk.

“So far investors are looking for stability, but in the coming of inflation, there is a demand for product that can cause sufficient income,” he said.

Former partner Tomohiro Sumia, who used to be in Blackstone, said it was to restore or transform property, then the fee is a way to achieve higher income.

Demand of direct work disk office

Investors say that while there are many transactions, there are some signs of overheating in some of the most common areas, such as hotels.

Gaw Capital Partner, which has been purchased by Tokyo Ginza, Tokyo Ginza, Tokyo Ginza, a very competitive, its manager and leader, has been purchased.

“It creates a certain hazardous market for investors to increase interest rates, very liquidity and a lot of competition,” he said.

In contrast, large-scale office properties are a bright place to avoid world trend, as more Japanese followed the end of the epidemic. At the end of December 20, the vacant salary of the Tokyo office was 3.5%, and at 14.7% of Manhattan, and 7.6% were shown in the center of London.

Given the lack of Japan’s work, companies use trendy offices near train stations as a means of attracting and maintaining staff. The promise of higher rents in investors’ money says Sumitomo Miju’s CEO of Natskuki Kittagu.

This year, Brookfield has acquired a luxury hotel and office complex Meguro Gajoen Meguro Gajoen has acquired Tokyo Garden TERRACE KioICHO in Tokyo and Blackone. Both properties include office buildings next to wedding places and hotels.

Active investors have long targeted the property kept by Japanese corporations, and some increase the success of corporate governance changes. Last year, the US Fund’s “Eliot” shares took stock in Tokyo’s gas last year.

When Eliot’s Investment News was broken, Goldman Sachs General Manager Bruce Kirk received emergency analysis of Japanese companies on Japanese companies.

At the end of March 2024, there were 25 trillion Ien Ienei in the real estate assets among the leading companies.

“In the past, he had faith that even though the value was there, it could not be opened,” Kirk said. “It is now more likely that investors can open some part or at least corporate governance to do something.”

(Report by Mihoanitan and Anton Bridge. Editing, Dave Dolani, Chang-Ran Kim and Sonal Paul’s editing)

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