Mitsubishi UFJ To Launch Rs 56 Billion Japan Property Fund
Real Estate

Mitsubishi UFJ To Launch Rs 56 Billion Japan Property Fund

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking group, is set to launch a 100 billion yen (approximately Rs 56 billion) real estate fund, focusing on underperforming properties across major Japanese cities. This move comes amid rising property prices and expectations of further interest rate hikes by the Bank of Japan.
The fund, managed by Mitsubishi UFJ Real Estate Asset Management, will be the unit’s second-largest, targeting mid-sized offices, residential assets, and hotels in Tokyo, Osaka, and Nagoya, according to President Naokatsu Uchida.
Designed to revitalise less attractive properties, the fund aims to capitalise on growing demand for higher returns in a rising interest rate environment. Around 30 billion yen in equity is expected to be raised from institutional investors, including life insurers, banks, and corporations, with the remainder funded through debt. Marketing for the fund is already underway, with initial investor response described as positive.
This is separate from a previously announced MUFG property fund, launched in partnership with Mitsubishi UFJ Trust and Banking, which is also targeting 100 billion yen in investments over three years.
The launch adds to a growing trend in Japan’s property investment landscape. In July, Dai-ichi Life and Marubeni announced a 400 billion yen domestic real estate fund. Earlier this year, Orix and Morgan Stanley also unveiled 100 billion yen fund plans, signalling strong investor interest in Japan’s property sector.
As of end-August, MUFG’s real estate asset management arm held over 500 billion yen (around Rs 280 billion) in assets under management, with plans to double that to 1 trillion yen by FY 2029–30. The firm has already doubled its workforce over the last two years and aims to expand headcount from 70 to 90 in the near term. 

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking group, is set to launch a 100 billion yen (approximately Rs 56 billion) real estate fund, focusing on underperforming properties across major Japanese cities. This move comes amid rising property prices and expectations of further interest rate hikes by the Bank of Japan.The fund, managed by Mitsubishi UFJ Real Estate Asset Management, will be the unit’s second-largest, targeting mid-sized offices, residential assets, and hotels in Tokyo, Osaka, and Nagoya, according to President Naokatsu Uchida.Designed to revitalise less attractive properties, the fund aims to capitalise on growing demand for higher returns in a rising interest rate environment. Around 30 billion yen in equity is expected to be raised from institutional investors, including life insurers, banks, and corporations, with the remainder funded through debt. Marketing for the fund is already underway, with initial investor response described as positive.This is separate from a previously announced MUFG property fund, launched in partnership with Mitsubishi UFJ Trust and Banking, which is also targeting 100 billion yen in investments over three years.The launch adds to a growing trend in Japan’s property investment landscape. In July, Dai-ichi Life and Marubeni announced a 400 billion yen domestic real estate fund. Earlier this year, Orix and Morgan Stanley also unveiled 100 billion yen fund plans, signalling strong investor interest in Japan’s property sector.As of end-August, MUFG’s real estate asset management arm held over 500 billion yen (around Rs 280 billion) in assets under management, with plans to double that to 1 trillion yen by FY 2029–30. The firm has already doubled its workforce over the last two years and aims to expand headcount from 70 to 90 in the near term. 

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