Dai-ichi Life, Marubeni JV to Launch $2.8B Japan Property Fund

Japan’s second-largest life insurer, Dai-ichi Life Holdings has joined with Tokyo-based conglomerate Marubeni to launch a JPY 400 billion ($2.77 billion) real estate investment fund, tapping rising interest in property strategies among domestic institutions.

The new fund was announced on the same day that the two firms completed the integration of their domestic real estate businesses into a new 50:50 joint venture, Dai-ichi Life Marubeni Real Estate (DMRE), which aims, “to provide a wide range of high-quality investment opportunities to meet the increasing real estate investment and management needs of individuals and pension funds,” according to a separate release by Dai-Ichi.

“The JV company will realize sustainable growth and creation of new value through leveraging economies of scale facilitated by the fusion of Dai-ichi Life Holdings’ asset management and financial intermediation functions with Marubeni’s track record and expertise cultivated through Marubeni’s extensive network and knowledge, and the JV company aims to achieve top-tier real estate asset management in terms of size in Japan,” said the joint release.

Ranked as Japan’s second largest life insurer, Dai-Ichi said in its statement that the new venture aims to invest across listed REITs, private REITS and other private funds. 

$21B Assets by Fiscal 2030

The new JV entity integrates seven real estate units from the two companies, spanning businesses including real estate asset management, real estate development and leasing and property management.

The combined assets under management of the JV stood at JPY 1.8 trillion as of the end of March 2025, according to Dai-ichi’s statement.

DMRE aims to grow its AUM to JPY 3 trillion by March 2031 by expanding its REIT business and through the new fund with Marubeni, which will count Dai-ichi Life as a core investor. The vehicle will also solicit capital from external investors including pension funds and individuals, said Dai-ichi Life.

Dai-ichi Life already owns 15,000 rental housing units in Japan, with the insurer in March of this year expanding its partnership with Alyssa Partners by purchasing 10 Japanese apartment buildings together with the Tokyo-based investment manager to bring that joint portfolio to 22 residential assets. 

Building on this residential track record, the partnership with Marubeni will see the duo cooperate in residential development, building on their experience and knowledge in the sector, as well as developing other assets including hotels and logistics facilities. 

Unlocking Underallocated Capital

Dai-ichi Life and Marubeni are launching the fund as some of Japan’s largest institutions look to raise their exposure to real estate. 

Japan’s Government Pension Investment Fund (GPIF), the world’s largest retirement programme with JPY 246 trillion in assets, currently allocates 1.65 percent of its portfolio to alternatives, including real estate. 

In an effort to boost overall returns, the fund increased its real estate assets under management 27 percent year-on-year to JPY 1.2 trillion in the 12 months ending March 31, 2024, according to its annual report.

The tie-up between Dai-ichi Life and Marubeni came amid renewed investor interest in Japanese real estate. 

Fund managers such as the GPIF may benefit from a domestic real estate market which is benefiting from rising investor interest with Japan’s National Tax Agency announcing on Tuesday that land prices across Japan had risen 2.7 percent on average from a year earlier, as of 1 January, the fastest pace since 1991.

Global Expansion

While working with Marubeni to scale up its domestic real estate business, Dai-ichi Life continues to expand its investments globally.

Last month, Dai-ichi Life announced it would take a 15 percent stake in M&G PLC, parent company of M&G Real Estate, establishing a partnership which will make M&G Dai-Ichi’s preferred asset management partner for Europe. 

The cooperation between the two firms is expected to generate $6 billion of investment in M&G funds over the next five years and $2 billion in investment in Dai-Ichi Life strategies over the same period.

In May, Dai-Ichi announced that it would boost its stake in UK asset manager Capula Investment Management to 15 percent from 4.7 percent.

In January, Dai-Ichi announced a partnership with Prudential Financial which involves the US titan’s PGIM unit providing asset management services to the Japanese firm.