A Practical Guide to Hold Periods, Exit Cap Rates, Buyer Pools, Sale Timing and Investment Liquidity Introduction Real estate investors often focus heavily on acquisition. They analyze: Purchase price Yield Financing Due diligence Lease structure Business plan But every acquisition contains another transaction that has not happened yet: the exit. For institutional investors, the eventual … Read more
A Practical Guide for Foreign Institutional Investors Introduction A foreign investor reviewing a Japanese commercial real estate opportunity may encounter a deceptively simple statement: “The property offers a 5% yield.” At first glance, this appears to provide a clear measure of investment return. But 5% of what? Is the calculation based on: Gross rental income? … Read more
A Practical Guide to Acquisition Taxes, Transaction Costs and All-In Investment Cost Introduction A ¥10 billion commercial property in Japan does not require only ¥10 billion of capital. The purchase price is only one component of the total acquisition cost. Depending on the transaction, an investor may also incur: Real estate acquisition tax Registration and … Read more
A Practical Guide for Foreign Institutional Real Estate Investors Introduction Foreign investors entering Japan’s commercial real estate market quickly encounter terminology that may be unfamiliar even to experienced global real estate investors. Among the most common terms are: GK TK GK-TK TMK Trust beneficiary interest SPC Non-recourse financing These are not simply technical labels. The … Read more
A Practical Guide to Debt, Leverage and Financing Structures in the Japanese Real Estate Market Introduction Japan attracts global real estate investors for many reasons, including the scale of its major urban markets, institutional-quality assets, deep domestic capital markets and historically low interest-rate environment. But acquiring an attractive property and financing it are two different … Read more
A practical guide to legal, technical, financial, environmental, tax and commercial due diligence for institutional investors acquiring real estate in Japan. Introduction Commercial real estate due diligence in Japan is not simply a process of confirming that a building exists, tenants are paying rent and the title can be transferred. For an institutional investor, due … Read more
Off-market real estate opportunities in Japan are driven by relationships, credibility and execution capability. This guide explains how foreign investors can build access through developers, brokers, asset managers, owners and other market participants.
A Practical Guide for Institutional Real Estate Investors Introduction Investors entering Japan’s commercial real estate market quickly discover that not all acquisition opportunities reach the market in the same way. Some properties are acquired directly from developers as newly developed assets. Others are purchased from existing owners after the properties have already entered the investment … Read more
A Practical Guide for Institutional Real Estate Investors Introduction Investors active in Japan’s institutional real estate market may encounter the term forward commitment. In Japanese real estate investment practice, the term can have a broader meaning than simply purchasing a property that is still under development. For example, Japanese REIT disclosures may describe a forward … Read more
Understanding the Benefits, Risks and Considerations for Institutional Investors Introduction For many investors entering Japan’s commercial real estate market, purchasing through a brokerage firm is the most familiar acquisition strategy. Brokers provide access to investment opportunities, coordinate transactions and help buyers navigate a complex market. However, brokerage firms are not the only route through which … Read more