ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Finance

Sumitomo launches private REIT

TOKYO -- Sumitomo is rolling out an unlisted real estate investment trust on Friday, tracking four properties developed by the trading house.

     SC Realty Private Investment's portfolio will initially include office and commercial buildings in Tokyo and Osaka, with the scale of the REIT coming to 32.4 billion yen ($268 million).

     The REIT will manage funds from 68 Japanese institutional investors, including megabanks, regional banks and pension funds.

     While government bonds provide meager returns amid Japan's ultralow long-term interest rates, the REIT will offer an expected yield of about 4% a year.

     With demand strong from investors, the plan is to double assets by the end of the year and expand the REIT to 200 billion yen in five years, but the time frame may be moved up by a year or two.

     The Japanese trading house seeks to use the funds collected for new development projects, raising capital efficiency.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media