Brookfield Asset Management has announced plans to expand its real estate investments in Japan following the completion of two significant deals totaling US$1.6 billion. The Canadian investment firm acquired a stake in the Gajoen mixed-use complex in Tokyo and purchased a large plot of land in Nagoya for logistics development.
The Gajoen complex, located in the heart of Tokyo, is owned by China Investment Corporation (CIC) and LaSalle Investment Management. Brookfield’s acquisition also includes one million square feet of land near Nagoya, where it plans to build a large warehouse. Both deals were finalized at the end of 2024.
These investments highlight a broader trend of growing foreign investor activity in the Japanese real estate market. This trend is attributed to factors such as the weak yen, low financing costs, inflationary pressures, and a boom in tourism, which have made certain assets, particularly hotels and apartments, more attractive to investors.
Brookfield’s investment strategy in Japan is expected to focus on logistics, mixed-use complexes, and hospitality assets. The company plans to continue increasing its investment in the country in 2025, with an emphasis on public and private real estate investment trusts (REITs) that may present opportunities for transactions.
Investment in Japanese real estate surged 40% in the first nine months of 2024, reaching an estimated total of 5 trillion yen (US$32 billion) for the year, according to Jones Lang LaSalle. The firm predicts further activity from both domestic and international investors in 2025.
Brookfield’s Tokyo office, along with teams based in China and Singapore, is actively involved in the company’s Japanese real estate deals.
The Gajoen acquisition was made through Brookfield’s balance sheet, while the land purchase in Nagoya was carried out via the firm’s global opportunistic strategy. Brookfield plans to invest in renovating public spaces within the Gajoen complex, including hotel and office areas. The details of Brookfield’s ownership stake and the identities of the co-owners of the property have not been disclosed.
The Gajoen complex, purchased by CIC and LaSalle from Mori Trust in 2015, features a luxury hotel, banquet halls, restaurants, and two office towers. The hotel is known for its Japanese gardens, historic stairway, and art-filled rooms, which are designated as cultural properties by the Tokyo Metropolitan Government. Amazon Japan is the primary tenant in the office towers.
Brookfield is also set to invest approximately US$300 million in developing a 2.4 million square-foot warehouse on the land it acquired in the Nagoya area, strategically located between Tokyo and Osaka.
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