Japan
Investment in US Real
Estate market
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Japanese
invest in US Real Estate through REIT
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The boom of real
estate and REIT in Japan has raised interest in investment in the US
Real Estate market. Japanese pension funds have been authorized to invest
in REIT since July 2003 and are expected in time to invest 5
to 10% of their assets in REIT just as US managers typically do. With a diversification
in mind they are also investing in US REIT. Their investment as of July
2004 is expected to be over 300 BY. This trend has been amplified by the
recent revision of the Japan- US tax treaty that treats more favorably
this type of investment. To offer this US REIT, US firms have partnered
with Japanese firms: Cohen and Steers, a US investment advisor, has
partnered with Daiwa Assets Management and Heitman has done the same
with Nomura Asset Management. |
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Private
investors are also interested in US REIT and Goldman Sachs has taken
advantage of this trend to set up a REIT for Japan in which Japanese
retail investors have put more than 100BY in less than one year. |
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