Aberdeen Standard Investments (ASI) has formed a joint venture with Sumitomo Mitsui Trust Bank to target the Japanese property market and other "mature" markets across the Asia-Pacific region.
The new venture will target investments in residential assets such as multi-family, senior housing, student accommodation and corporate housing. It will acquire newly-constructed properties, as well as older residential properties which have the potential to be renovated, repositioned or converted.
The joint venture aims to deliver what it calls "a compelling Asia Pacific real estate strategy for investors", the companies said in a statement.
The joint venture is an important step in expanding our global investment offering"
ASI, which manages about £500bn of assets globally, said that a continued trend towards urbanisation in Japan, especially the country's largest cities such as Tokyo and Osaka, provided the "structural underpinning" to the joint venture's strategy, bolstered by "significant rental and yield gaps between new and older buildings".
For the Japanese market, Aberdeen Standard Investments will co-invest and co-manage investments with their Japanese partner's affiliate, Sumitomo Mitsui Trust Real Estate Investment Management Co. Ltd.
Other markets targeted for investment include Australia, Korea, Hong Kong and Singapore.
David Paine, global co-head of real estate, Aberdeen Standard Investments, said: "The joint venture is an important step in expanding our global investment offering.
"We are pleased to partner with Sumitomo Mitsui Trust Bank to bring a new Japan-focused real estate strategy to clients, and look forward to building out this relationship."
Kengo Noguchi, senior managing executive officer, Sumitomo Mitsui Trust Bank, added: "We are confident in a successful partnership building on our strong capabilities in real estate brokerage and asset management."
The investments aim to embed environmental, social and governance (ESG) factors into the investment process.