Abrdn Launches Japan Real Estate Expansion With Dutch Fund Manager PGGM

Scottish asset manager Abrdn is expanding its real estate business in Japan with a residential investment mandate to be managed on behalf of Dutch pension investor PGGM.

To lead the expansion, Abrdn has appointed former Idera Capital Management executive Harumi Kadono as head of Japan real estate, according to a Tuesday statement by the firm formerly known as Standard Life Aberdeen.

Abrdn’s ramp-up coincides with the US Federal Reserve’s monetary easing, the Edinburgh-based firm said, with global real estate likely to gain from lower interest rates and the Japan residential market further supported by the robust fundamentals of Asia’s second-largest economy and substantial local demand.

“The Japanese market is pivotal to Abrdn’s global business strategy,” said Japan CEO Ken Yajima. “We are deeply committed to this market and continuously strengthen our local team to offer superior services and innovative investment solutions to both Japanese investors and those looking to invest in Japan. This expansion underlines our ambition to excel in the Japanese real estate market.”

Former GIC Hand

Kadono most recently served as executive director and head of fund management in the Tokyo office of Idera, a unit of Chinese conglomerate Fosun International.

Before joining Idera in 2009, Kadono spent four years at Singaporean sovereign fund GIC, where she managed real estate funds investing in office, residential and retail development projects.

The Osaka University grad and CPA also holds a master’s degree from International Christian University, as well as licences for real estate brokerage and real estate securitisation.

Japan’s residential sector is a regional standout due to its robust occupier demand and defensive attributes, said Anne Breen, Abrdn’s global head of real estate.

“This expansion underscores our commitment to enhancing our real estate capabilities globally and across diverse segments,” Breen said. “We are dedicated to building up our team in Japan and throughout the region, aiming to capitalise on these investment opportunities.”

Relationship Grows

Yajima joined Abrdn in 2019 as the London-listed firm sought to build a long-term business in Japan by harnessing the former Schroders executive’s network of contacts.

The Japan investment mandate provides an opportunity for Abrdn to build on its existing relationship with Netherlands-based PGGM, which previously joined with the Scottish firm to back infrastructure projects including a French toll road and a London traffic tunnel.

“We look forward to leveraging Abrdn’s global knowledge on sustainability which generates long-term value for its customers,” said Ronald Bausch, PGGM’s senior director of Asia Pacific private real estate. “This will help us to generate good financial returns while improving on our sustainability targets which are set by our client PFZW, the Dutch pension scheme for the healthcare sector.”

Abrdn manages £35 billion ($45.8 billion) in real estate assets and about 1,000 properties globally.