AXA Launches Tokyo Office
Property Fund

TOKYO- AXA Real Estate Investment Managers has launched the Tokyo Office Property Fund . At the first close of this fund, it provides US $126-million equity to invest in mid-size Tokyo office properties . “The first close of this new fund will allow us to invest in the Tokyo office market at what we believe is a very opportune time in the market cycle,” Frank Khoo, global head of Asia at AXA Real Estate says in a prespared statement. “Values have been under pressure since the onset of the global economic crisis and currently offer stable income yields and the opportunity for capital appreciation.” AXA also says that it is shooting for returns over of 10% IRR after up to 50% leverage with expected annual cash-on-cash yield of at least 5% when fully invested. The fund aims to take on mid-sized office assets in individual lot sizes ranging in price from US $38million to US $126 million in key Tokyo neighbourhoods. Sumitomo Mitsui Trust presented the debut of its Tokyo Office Real Estate Investment Fund , which was created from capital raised by Japanese domestic institutional investors. At press time, the latest information stated that this fund may seek to co-invest AXA’s Tokyo Office Property Fund, but neither company have released further details about this potential venture.