TH Real Estate has made its debut investment in the Japanese property market, buying a multi-let asset from Standard Life Investments (SLI).
The Global Real Estate Fund sold the mixed-use Ginza 1 Chome Building in Tokyo for around $82m (鈧�73m).
Chris Reilly, managing director for the Asia Pacific at , said Japan held further strong investment potential.
鈥淎s a business, we are committed to growing our business across the Asia-Pacific region,鈥� he said.
鈥淭his latest investment complements our existing Asia-Pacific portfolio and aligns with our strategy of investing across the world鈥檚 most attractive real estate markets, identifying tomorrow鈥檚 鈥榳inning鈥� cities.鈥�
The 49,000 sq ft asset includes retail and office space.
SLI paid 拢38.7m for the asset in 2014.
James Britton, manager of the Global Real Estate Fund, said: 鈥淲e are pleased to have fulfilled our business plan for this building, working in close collaboration with our local partners 鈥� Sumitomo Mitsui Trust Bank and Sumitomo Mitsui Trust Real Estate Investment Management.
鈥淥ur strategy of taking on a degree of letting risk in a core sub-market has generated exceptional returns for investors.鈥�
Britton said the fund鈥檚 remaining Tokyo office, Nishi-Shinbashi, continued to be a 鈥渃ore holding鈥�, providing jurisdictional and currency diversification benefits.
The disposal represented an ungeared internal rate of return of 30.1% in sterling terms.
Shu Watanabe, director of capital transactions for Asia at TH Real Estate, said Tokyo鈥檚 demographic fundamentals made it a defensive long-term investment, supported by a highly developed social infrastructure and mature economy.
