Japan REIT (Real Estate Investment Trust) market |
Japan Real Estate Boom: REIT |
||
 The Japan REIT (Real
Estate Investment Trust) boom
may
be ending soon as the TSE REIT index is currently retesting a top. Institutional investors such as pension funds are buying REIT because they offer a yield of around 3.4% against 1.5% for the 10 years JGB (Japanese Government Bond). Total REIT assets have reached $3.1 Billion in June 2005 versus 1.6 TY (or 1.5 B$) by end of March 2004. As of November 2005, the number of listed REIT was 23.One year before in October 2004 only 14 REIT were listed. With the listing of Top REIT Inc. on March 1, 2006 there are now 28 real estate investment trusts listed on the Tokyo Stock Exchange. Japan Real Estate Investment Corp has raised 653 M$ in the first semester 2005. Current REIT yield is around 3.4% and we expect the interest in REIT persist as long as the Japanese Government Bond (JGB) yields are low. Further proof of this real estate boom are shown by the global Morgan Stanley real estate opportunity fund set up beginning of 2005, which is expected to invest 50% of its 3 Trillion Yen fund in Japan. Also Japan Hotel & Resort Inc. (8981), a real estate investment trust formed by Goldman Sachs Group Inc., made a strong debut in February 2006, jumping 15% from its premarket price. Balance of real estate loans at large banks which hit 4.5 trillion yen at the end of September 2005, up 50% from a year earlier also help fuel the real estate investment market. Borrowed money is now estimated to account for 40-50% of the total assets at REITs. See also our comments on the REIT market in articles in Bloomberg and Japan Times |
||
Additional Real Estate Resources |
||
|
- Japan REIT - Japan REIF - US REIT investment in Japan - Japanese investment in US REIT - JMC Real Estate Services - Latest Real Estate News - Blog Invest in Japan |
||
| Useful Real Estate links to Real Estate Situation Reports | ||
|
Contact us:
Eric Perraudin,
Managing Partner, eric@japanconsult.com
|
|
|