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Investing in Japan real estate: The Singapore route

Insight 24 June 2021

Investing in Japan real estate: The Singapore route

In recent years, the Singapore asset management industry has seen increasing interest from investors and fund managers to invest into Japanese real estate. This trend is expected to increase over time as more managers find opportunities to use Singapore structures to invest into the asset class.

By leveraging on our presence in Japan, our office in Singapore offers a complete solution to the administrative and operational requirements of typical Singapore-Japan investment structures.

Why invest in Japanese real estate?

  • Third largest economy in the world
  • Asset values at globally competitive levels
  • Attractive long-term investment returns
  • Good levels of market liquidity
  • Highly structured market with strong support in legal, tax, accounting, and administration
  • Areas of future development include logistics, renewable energy and infrastructure
  • Market reform planned to digitisation of document and data exchange
  • Cumulative transaction volume for the first three quarters of 2020 reached a total of JPY 2.6 trillion, up 3% y-o-y (CBRE Market Outlook 2021)

Structuring investments

  • Common location for fund domicile
  • Investor / LP entry point into the investment structure
  • A strong and established financial services sector geared towards global Real Estate investment structures
  • Long term track record for fund structures
  • US investors (Cayman) and EU investors (Luxembourg) favour, and are familiar with, these locations
  • Holding Company location
  • Alternative fund domicile location to Cayman / Luxembourg
  • Regulated market with an excellent global reputation for financial services
  • Work force has deep understanding and experience of Real Estate investment structures
  • Competitive tax structuring location for investments into Japan
  • Investment asset location, significant and increasing component of global Real Estate funds
  • Highly structured legal environment geared towards investment transparency
  • Increasing number of international investment managers, legal and accounting firms
  • Integrated investment structures with Singapore in place
  • Full outsourcing of middle and back office functions legally permitted

How can Sanne help?

Sanne offers a fully integrated service model throughout the fund and investment structure, using industry leading system solutions coupled with expertise in every jurisdiction within the investment structure.

If you would like to learn more on how Sanne can assist you, contact Xander or Sakuya Tajima directly.

Let's talk...

Real Assets
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Sakuya Tajima Head of Business Development, Japan - Japan
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Other insights from Mark Bennett

Insight 14 July 2021
APREA & Sanne webcast | Investing in Japanese real estate, and how to do so through Singapore structures
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Sanne acquires Deutsche Trust Company Limited Japan
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Sanne appoints new Head of Business Development in Tokyo
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