Savills IM Buys Japan, Australia Properties for Pan-Asian Flagship Fund

Savills Investment Management has completed its first acquisitions in Japan’s office and residential sectors under the firm’s flagship pan-Asian fund, with the vehicle also picking up a majority stake in a Perth neighbourhood mall for its third purchase in Australia.

In Japan, Savills IM acquired a multi-tenanted office building within walking distance of Yokohama Station in Greater Tokyo, the London-based firm said Tuesday in a release. The property spans 5,500 square metres (59,202 square feet) of rentable floor space.

The fund manager also aggregated a 13-asset portfolio comprising seven multifamily buildings and six master-leased dormitories located across Greater Tokyo and central Fukuoka. The portfolio of 576 rentable units, with a combined lettable area of 25,000 square metres, was formed by two investments completed with separate vendors.

No names, precise locations or purchase prices were disclosed for any of the Japanese assets, which were acquired via off-market transactions with sellers that Savills IM didn’t identify.

Shopping in Perth

In Australia, Savills IM acquired a 75 percent interest in Forest Lakes Shopping Centre in Perth for €54 million ($53.7 million), with local retail operator Greenpool Capital holding the remaining 25 percent.

Forest Lakes, located 15 kilometres (9.3 miles) southeast of the Perth CBD, comprises 42 shops across 14,580 square metres, with the transaction valuing the shopping centre at €4,935 ($4,911) per square metre. The asset sits on a 6.6 hectare (16.3 acre) land holding with potential for various value-add initiatives, Savills IM said.

The facility, anchored by three supermarkets under the Aldi, Coles and Woolworths brands, has an occupancy rate of 97 percent and a remaining average lease term of eight years.

“The real estate market in the Asia Pacific region offers investors strong economic growth with diversification of investment opportunities,” said Greg Lapham, head of Australia at Savills IM. “Due to its transparency, Australia is an important and attractive destination for real estate investments and therefore also plays an important role in our flagship pan-Asian fund.”

Down Under Deals

The Perth acquisition is the third overall in Australia for the core-plus vehicle, dubbed Asia Pacific Income and Growth Fund, which has achieved equity commitments totalling €207 million, Savills IM said.

The fund completed the $117.4 million acquisition of 241 O’Riordan Street, an 11-storey office building in the Mascot submarket near Sydney, and the $112.4 million purchase of Clifford Gardens Shopping Centre in Toowoomba, Australia’s second-largest inland city, shortly before announcing a $117 million first closing in May of last year.

APACIG invests in a diverse range of sectors, including offices, industrial, retail and residential, with a target investment volume of $1.2 billion, including a maximum debt ratio of 60 percent at fund level.

Sydney-based Lapham, formerly of Savills IM’s Hong Kong office, manages the 2020-vintage fund with his investment team.