Savills Investment Management has launched its first open-ended core fund for Asia, the Japan Residential Fund II (JRF II), at 21.1 billion yen (US$200 million).  The fund’s first committed acquisition is a high-quality portfolio of nine residential assets in Greater Tokyo.

Against the backdrop of the Covid-19 pandemic, the successful first closing of the fund illustrates the attractiveness of the defensive sector, which characterized by stable income returns and liquidity throughout the property cycle, Savills IM said in a statement, adding that a global multi-manager acted as cornerstone investor.

JRF II, the company’s fourth Japanese fund, is discretionary in nature with a long-term investment horizon. The fund will seek to capitalize on Japan's ongoing urbanization and demographic shifts towards smaller household sizes, which support high occupancy rates and rising tenant demand for quality multi-family units in Greater Tokyo and other major regional cities, according to the statement.

The launch follows the success of JRF I, as well as the final close earlier last year of Japan Value Fund II at US$500 million equity. Japan Value Fund I was wound up in 2020 after delivering outperformance against targeted returns over its four-year life.

Savills IM has originated, invested, and transacted over US$6 billion in the Japanese market since 2014.