Heitman will be the advisor to Nomura Asset Management Co., Ltd., who will actively manage the fund. Heitman CEO and president Maury Tognarelli says the recent deregulation of the Japanese Investment Trusts Association has allowed Japanese investors to manage their investment trusts through income-oriented products such as REITs.
"Heitman and Nomura have recognized a strong appetite in the Japanese market for products like Nomura US-REIT Open Fund," says Tognarelli. "Investments in US REITs are currently generating competitive yields--about 6% higher--to similar products in Japan."
Heitman says the fund already has been well received, as investors have put up approximately $140 million to date. The fund should be one of the largest of its type in the Japanese marketplace, and its success may well give birth to other such funds.
"With the stock markets performing erratically and yields on bonds at lower levels, Japanese investors have been seeking new investment products like US REITs," says Hirokazu Minamida, general manager of the Investment Trust Department at Nomura Securities. "We're confident that as the US REIT market continues to grow, interest in products like Nomura REIT Open Fund will also grow.
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