TOKYO -- Nomura Real Estate Master Fund aims to expand its portfolio by 50% to 1.5 trillion yen ($14.4 billion) in five years.
The real estate investment fund, or REIT, merged with Top REIT on Thursday, lifting its assets under management to 933.1 billion yen. The fund is operated by Nomura Real Estate Asset Management, a unit of Nomura Real Estate Holdings.
While Nomura Real Estate Master Fund overtook Mitsubishi Estate's Japan Real Estate Investment to become Japan's second-largest listed REIT, Mitsui Fudosan's Nippon Building Fund remains the largest with a portfolio of 1.1 trillion yen.
By diversifying its properties, the fund looks to reduce risks from vacancies and boost liquidity, making it easier for investors to purchase.
"Through the merger, we will accelerate real estate acquisitions," said Hiroshi Kurokawa, senior managing executive officer at Nomura Real Estate Asset Management.
Office buildings and rental units developed by Nomura Real Estate Holdings will be added to the portfolio, boosting income for the property developer.