Japan Real Estate Boom: REIF
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REIF Real Estate Investment
Fund which are privately placed REIT are also taking advantage of
cheap funding from banks around 2.5% to leverage and combined with their
active management of properties turn out yields from 6% to up to 20%.
Da Vinci Advisors has just launched in December 2004, the largest REIF
that will invest 400 BY using a leverage of 300BY. The fund will be
managed using a discretionary contract giving large autonomy to fund
managers and will allow them to produce high returns in the range of
25%. The fund has been subscribed by major Japanese institutional
investors and the size of the fund had to be increased from 70 BY
to 400BY due to large demand.
Previously, the largest REIF was the one launched by Secured Capital
and Nomura.
Total REIF assets have reached 1.3 TY by end of March 2004. |
Major REIF Players and size
(Estimate December 2004)
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Da Vinci Advisors
Nomura Real Estate
Mitsubishi Tokyo Financial
Mitsui Fudosan
Creed
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400BY
250 BY
200 BY
100 BY
60 BY |
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