MUNICH—Bavarian pension group Bayerische Versorgungskammer is making another foray into Japan, this time acquiring more than 1,500 residential units across 39 apartment properties in the metro areas of that county's major cities. CBRE Global Investors and Universal-Investment GmbH made the acquisition on BVK's behalf. Deal terms were not disclosed; however, industry data show that apartment properties across Tokyo and other major Japanese markets have traded in the range of $140,000 to $280,000 per unit in recent months.

The majority of the portfolio is located in Greater Tokyo and other major markets, including Osaka, Sapporo and Fukuoka. The assets primarily feature compact residential units that are well-located in their respective submarkets. Blended occupancy in the portfolio is more than 90%.

“Occupier demand for compact residential apartments that are conveniently located in major cities in Japan has historically been exceptionally stable and is expected to remain so as the number of single-person households continues to increase,” says Michael Pierce, portfolio manager for CBRE GI. “Stability of existing properties should be further buoyed as new supply is constrained by the rising cost of land, materials and labor. The quality and composition of this portfolio make it uniquely well-positioned to outperform the broader market during our projected long-term investment period.”