GPIF, The world’s largest pension fund announces their call for application for new global real estate and infrastructure asset managers

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Tuesday, 11 April 2017

 

For its order to implement alternative investments into Private Equity, Infrastructure, and Real Estate both in and outside of Japan, Government Pension Investment Fund, Japan (AUM : 144.8 Trillion JPY / 1.2 Trillion USD), the world’s largest pension fund, has announced its call for applications of asset managers. Registration opens on 11th April, 2017, and the review process starts on 1st June, 2017. The criteria for the Asset Manager’s strategy are as follow:

 

  1. Private Equity : Global- Diversified.
  2. Infrastructure : Global- Core. Diversified investments in mainly core/ brownfield infrastructure funds primarily in developed countries.
  3. Real Estate :
     i. Global- Core : Diversified investments in mainly core- type real estate funds in primarily developed countries (in principle excluding Japan) .

    ii. Japan- Core : Diversified investments in mainly core- type real estate funds.


They define “Core- type” as a product mainly focused on generating a stable income, and exclude products invested mainly in listed funds.

 

The meaning of GPIF`s announcement is not only the world’s largest pension fund start global real estate investment, but also it has larger percussion for Japanese investors.

 

For example, since last October, Asterisk has held 4 seminars focused on Global real estate investment- covering US, UK, EU, Australia, Asia and the Japanese hospitality real estate. Over 200 people attended, coming from 110 different entities. Attendees included major financial institutions, public & corporate pensions, insurance companies, REITs, gatekeepers and etc. The total asset sizes of Japanese institutional investor in attendance exceeds 10 trillion USD.

 

Prior to GPIF’s announcement, on March 31, Japan Post Bank, one of the world’s largest financial institutions, released a statement on their future business development and application for new business. Japan Post Bank publically announced its plans to shift its focus from Japanese government bond centered management to international diversified investment.

 

Through the adoption of outside experts who have high level skills and experience, they wish to promote sophistication and diversification of their asset management. Japan Post Bank has mentioned they are actively pursuing investments for alternative investment including overseas real estate and private equity. As of the end of 2016, total AUM of Japan Post Bank is 204 trillion JPY (1.7 trillion USD). Japan Post Bank’s public message is an indication of Japanese capital to moving to global alternative markets.

 

This announcement has been long awaited, as it serves as a green light for all Japanese institutional investors to start global real estate investment, after the long time hiatus for overseas real estate after the Japanese bubble burst.

 

For further details about this newsletter and our services, please contact: Yukihiko Ito (yuki@asteriskrealty.jp) / Elizabeth Deakin (elizabeth@asteriskrealty.jp)

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Asterisk’s upcoming seminars for Japanese institutional investors:

 

Australian Real Estate Investment Seminar (April 19 2017)

 

Integrated resorts and hospitality real estate investment (May/June 2017)

  • “Opportunities of luxury hospitality real estate with Integrated Resort”
  • “New real estate investment sectors created by Integrated Resort”

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About Asterisk Realty & Placement Agency

Asterisk is a private fund placement agency for global alternative in Japan. Through our unique and extensive network of Japanese investors, we support global fund managers in accessing Japanese and Asian institutional investors (pensions, financial institutions, real estate developers, other business companies, etc.).

We provide access and strategies for overseas fund managers to bridge the gap between them and Japanese investors.

 

Asterisk Inc.,

3-29 Kioicho Gluckheim Suite 2003 , Chiyoda-ku , Tokyo , Japan

Telephone: 03-3263-9909

Email : info@japanplacementagent.com

Website : http://japanplacementagent.com/en/

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Real Estate License / Governor of Tokyo (2) No.89094

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