GE Capital Real Estate and Aberdeen Asset Management Launch Joint Venture

GE Capital Real Estate and Aberdeen Asset Management PLC launch a $400 million coinvestment vehicle called The Tokyo Residential JV. It will be used to acquire residential investments in the Tokyo multifamily sector over the next two years.

"This is another clear sign of our continuing confidence in the Japan market," explained Mark Norbom, President & CEO of GE Japan. For GE Capital Real Estate, the joint venture is part of a broader strategy of putting its leading global real estate capabilities to work for strategic partners and institutional investors.

Jon Lekander, Global Head of Indirect Investment Management for Aberdeen Group, commented, "Until recently we've been investing in Asian property primarily through third party funds. This partnership illustrates Aberdeen's ability to leverage our relationship network in Asia Pacific to tap unique opportunities like club deals and joint ventures."

"Tokyo residential represents an important segment for us and our clients," said Jonathan Kern, President of GE Capital Real Estate Global Investment Management. "Given our extensive experience in the sector and domain knowledge, we're confident this is a meaningful opportunity."

The JV, which was recently closed, is targeting studio and one bedroom apartment properties in Tokyo. The sector has proven resilient throughout the downturn, providing attractive riskadjusted returns. Despite an overall decline in population in Japan, the population of Tokyo continues to grow, making residential investments attractive with stable occupancy demand.

"Aberdeen is an ideal partner for our investment program in Tokyo multifamily residential, given its commitment to Asia," added Grace Chang, General Manager Asia Pacific, GE Capital Real Estate Global Investment Management.

GE has been investing in real estate in Japan since 1998, and the recent earthquake is expected to have no impact on this JV.

Aberdeen, which has been investing in Asian property since 2006, committed to the joint venture on behalf of two Asia Pacific property funds of funds and a separate account it advises.

Puay Ju Kang, Aberdeen's Head of Property, Asia Pacific, added, "We are very pleased to find in GE a partner and manager with a wealth of investment experience in the region, and one who shares our exacting investment approach."

The Tokyo Residential JV is not available for investment.

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on May 25, 2011