Aberdeen Investments has acquired two high-grade rental properties in central Tokyo, strengthening its presence in Japan’s residential sector as the firm capitalizes on rising multifamily rental yields in Asia’s largest metropolitan market.
The global asset manager said Wednesday it had acquired WORVE Tokyo Kiba and Dimus Negishi under its Japan Residential Property Strategy, marking a key milestone following its entry into the country’s living sector last year.
“The Japanese market is an exciting, fast-growing addition to our global Living business, which broke the EUR 10 billion assets under management milestone last year,” said Marc Pamin, CEO of Living at Aberdeen Investments. “We are deeply committed to this market and continuously strengthening our investment capabilities to offer superior services and innovative investment solutions to both Japanese investors and those looking to invest in Japan. These acquisitions underline our ambition to excel in the Japanese real estate market.”
Japan’s multifamily sector has gained renewed interest from global investors, with average Tokyo residential rents climbing 6.4% year-on-year, buoyed by strong net migration, wage growth, and surging condo prices that have pushed more residents toward rentals.
Both newly built properties are located within Tokyo’s 23 wards, providing convenient access to transit and proximity to major commercial hubs. WORVE Tokyo Kiba, a 12-story complex completed in November 2022, comprises 125 units and a retail space, with a 95.8% occupancy rate as of January. Dimus Negishi, a 7-story development completed in February 2024, includes 71 units and was 93.8% leased at the start of the year.
“Japan has been one of the markets where we hold the highest real estate investment conviction in APAC,” said Harumi Kadono, Head of Japan Real Estate at Aberdeen. “At the same time, the living and residential sector ranks highly in our investment preferences globally.”
“For Tokyo specifically, the investment case remains robust. Vacancy rates have historically been tight, and trends underpinning residential leasing demand—such as net migration, improved wage growth, and increased female labor participation—are likely to endure,” Kadono added. “We believe this asset class offers an excellent opportunity for global investors seeking to diversify their portfolios while achieving superior long-term returns and stable income.”
Aberdeen entered Japan’s residential market in October 2024 after winning a mandate from Dutch pension fund manager PGGM to oversee a 3,300-unit rental portfolio. By November, its total global residential investments surpassed €10 billion. The firm now manages £35 billion in global real estate assets, covering more than 1,000 properties with over 300 real estate professionals worldwide.
Business News Asia