AFRA Japan Real Estate Fund
The Fund seeks to deliver exceptional returns in the short-mid term, with an opportunity for significant capital uplift in its strategic investments.
About the Fund
AFRA Japan Real Estate Fund seeks to deliver exceptional returns to investors by acquiring valued hospitality assets in Japan. We believe the timing is perfect to make investments in Japan.
A top-down investment process is used to carry out selection of the specific hotel, parallel to a rigorous bottom-up approach and strong scrutiny of the asset’s financial health.
What is our Investment Approach?
The Fund focuses on acquiring multiple hospitality assets strategically located across Japan, with a strong emphasis on businesses affected by the aftermath of Japan’s Covid lockdown. Our objective is to capitalize on the recovery by purchasing hotels in major Japanese cities.
Accessing the Japanese hotel market can be challenging for overseas investors without a local presence, which we have on the ground. We leverage our extensive network of brokers and advisors in Japan to stay informed about market pricing and dynamics.
The Fund follows a stringent and hierarchal asset selection process to ensure that due diligence is meticulously conducted on every selected asset.
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Key Advantages of Japanese Investments
- Lowest interest rates with a continued loose monetary policy.
- Strong laws that offer the institutional investor strong liquidity and security.
- Attractive yield spread between borrowing costs and cap rates.
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Key Advantages of Investing in the Hospitality Sector
- Strong influx of Japanese tourists after lockdown prompts recovery in the hospitality sector.
- Discounted property values manifest primarily because of debt burden, offering undervalued investments in the hospitality industry with prices sold below valuation.
- Newly built properties require little capital expenditure.
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Key Advantages of Real Estate Investments
- Diversification of risk as a non-traditional asset class.
- Resistant to inflationary pressures.
- Asset enhancement opportunities can increase overall valuation and returns of real estate investment.
Fortify Your Portfolio With Our Japanese Real Estate Fund
Years of industry experience has taught us that the timing of property investments is equally as important as asset valuation.
With Japan’s low interest rates relative to other geographies, a burgeoning tourist influx and strong industry fundamentals, there is no better time than now.
Who is this Fund Available to?
Qualified Investors, as defined in Paragraph 1 of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations.