A new wave of big private equity players including KKR is moving in on Japan's property market, drawn by attractive yield spreads with Japan's low interest rates and by prospective deals with companies that hold underutilized assets.
Property investors worldwide are flush with cash and emboldened by stabilizing vacancy rates and rents after disruption by the pandemic, and some are setting their sights on the buildings, real estate subsidiaries and other property assets cluttering up Japanese companies' balance sheets.
"The Japanese market presents a huge opportunity," said David Cheong, managing director at KKR. He noted wide scope to help corporations bolster their property-related operations and boost returns on property assets.