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MUFG is set to launch a 100 billion yen (USD 680 million) fund targeting Japanese real estate, focusing on mid-sized offices, residential properties, and hotels in Tokyo, Osaka, and Nagoya. Institutional investors will contribute 30 billion yen, with the remainder financed through debt. This marks the company's second-largest fund, aiming to improve underperforming assets amid rising investor return expectations. The move follows other major fund launches this year by Dai-ichi Life, Marubeni, Orix, and Morgan Stanley. MUFG's asset management arm seeks to grow from 500 billion yen to 1 trillion yen in assets by 2030.
Mitsubishi UFJ Financial Group (MUFG) is preparing to launch a 100 billion yen (USD 680 million) fund aimed at investing in Japanese real estate, according to Naokatsu Uchida, president of Mitsubishi UFJ Real Estate Asset Management. The fund is expected to attract 30 billion yen from institutional investors, including life insurers, banks, and corporate investors, while the remainder will be financed through debt. Uchida noted that investors are increasingly expecting higher returns as interest rates rise from historically low levels. Advertisement
This will be the unit's second-largest fund and will concentrate on mid-sized offices, residential properties, and hotels in key cities such as Tokyo, Osaka, and Nagoya. The fund plans to focus on underperforming assets with the goal of enhancing their value and appeal. Marketing efforts have already begun, and early investor feedback has been largely positive.
The new fund is distinct from an earlier property fund announced by MUFG and Mitsubishi UFJ Trust and Banking in April, which aims to invest 100 billion yen in real estate over three years. Other notable recent launches in Japan include a 400 billion yen real estate fund announced in July by insurer Dai-ichi Life and trading house Marubeni, as well as a 100 billion yen fund by Orix in February. Morgan Stanley has also been reported to raise around 100 billion yen in equity for Japanese real estate investments this year.
MUFG's real estate asset management division had over 500 billion yen in assets under management as of the end of August and aims to expand to 1 trillion yen by the fiscal year ending March 2030. The division has doubled its workforce over the past two years and plans to increase staff from 70 to 90 to support its growth strategy.
Source: Reuters
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