AXA Investment Managers - Real Assets agrees acquisition of mixed-use development site in Sapporo, Japan
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real asset investments and the leading(1) real estate portfolio and asset manager in Europe, announces that it has agreed the acquisition of a 6,691 sqm / 1.65 acre site in Sapporo, Japan for the development of a hotel and offices, representing a total investment size of ¥25 billion (€200 million). The site will be acquired, on behalf of a client, from Yamaha Corporation.
Construction of a hotel-led development will commence, scheduled to complete in 2024. The current plans comprise a single asset offering a mix of modern office space and hotel accommodation, addressing the two primary areas of demand in the local area, with advanced discussions already underway for the pre-let of both elements.
Sapporo is the capital city of Hokkaido island, which has a population of two million and is one of Japan’s top tourist destinations. Investment into the island’s infrastructure, including the expansion of airport and bullet train network, is expected to see it continuing to grow in popularity amongst international visitors.
This investment represents AXA IM - Real Assets’ third investment in the city of Sapporo and comes shortly after its forward purchase of a hotel development in Hiroshima, Japan, adding to its €4.4 billion of assets under management across the APAC region. The transaction forms part of AXA IM - Real Assets’ ongoing strategy to undertake or acquire large-scale and high-profile developments in growth cities globally, building out its portfolio of core assets. AXA IM - Real Assets has completed over 250 projects with a total value of €14 billion since 2000, and currently has a further c. €9 billion of development projects underway(2).
Laurent Jacquemin, Head of Asia Pacific at AXA IM - Real Assets, commented: “This ambitious project will deliver significant new supplies of high-quality office and hotel accommodation to the Sapporo market, which is characterised by a clear shortage of Grade A stock coupled with soaring levels of demand. The transaction, which presents the rare opportunity to secure a project of this size, showcases our local team’s market-leading deal sourcing capabilities. We are confident in the long-term return profile of this opportunity thanks to the combination of our development expertise and the project’s strong location in a city consistently ranked as a top tourist destination in Japan.”
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1 Source: INREV/ANREV Fund Manager Survey – May 2019 – in terms of assets under management
2 Source: AXA IM – Real Assets’ data as of end of June 2019 (unaudited)
AXA Investment Managers - Real Assets
Jocelyne Tamssom, Head of Communications
Tel: +33 1 44 45 97 95
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About AXA Investment Managers
AXA Investment Managers (AXA IM) is an active, long-term, global, multi-asset investor. We work with clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. With approximately €757 billion in assets under management as at end of June 2019(1), AXA IM employs over 2,350 employees around the world and operates out of 30 offices across 21 countries. AXA IM is part of the AXA Group, a world leader in financial protection and wealth management.
About AXA Investment Managers - Real Assets
AXA Investment Managers - Real Assets has €85 billion in assets under management, including €64.3 billion in direct property & infrastructure and €16.9 billion in real asset finance as of end of June 2019(2). We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(3), and one of the largest worldwide. Our teams have been managing funds and mandates for over 30 years and comprise over 600 people in 13 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.
AXA Investment Managers is part of the AXA Group, a world leader in financial protection and wealth management.
1 Source: AXA IM unaudited data
2 Source: AXA IM - Real Assets’ unaudited data
3 Source: INREV/ANREV Fund Manager Survey – May 2019 – in terms of assets under management