Grosvenor plans to raise 40 billion yen ($492 million) for a fund to invest in Japanese real estate as the market recovers. London-based Grosvenor Group, with about $17 billion in assets, is the real estate firm owned by the family trust of Britain’s Duke of Westminster.
The firm opened its Tokyo office in 2001. Ken Nakajima, Tokyo-based managing director at Grosvenor Fund Management Japan, said the firm plans to invest in office and apartment buildings in the greater Tokyo area. The new fund will finance about 50% of the assets with loans, a ratio that will allow it to buy as much as 100 billion yen ($1.24 billion) in property, he said.
Investors have started banking on a recovery in investor appetite for commercial properties in Asia. Tokyo was ranked the first in property transactions in the past 12 months with $28 billion, followed by Shanghai and Singapore, according to investment sales data compiled from Real Capital Analytics.