Based in New York with over $24 billion in assets, Angelo Gordon & Co., is looking to increase Japan property investments after acquiring $650 billion worth of real estate in the past two years.
Angelo Gordon was founded by Chief Executive Officer John Angelo and Chief Investment Officer Michael Gordon. The company specializes in managing fixed income, real estate, buyout and hedge funds. Recently. the company has expressed interest in acquiring office and commercial buildings in Tokyo, according to Jon Tanaka, managing director of Angelo Gordon International LLC.
As Japan?s real estate recovers, Angelo Gordon continues to seek bargains in the country. According to RREEF, a property investment arm of Deutsche Bank AG, office buildings in Tokyo provided 3.5 percent total return in 2011, after a 0.5 percent gain in 2010 and a three straight year of decline before that.
Since 2005, the company has been investing in the region, having spent more than $1 billion in 37 deals in Asia, four of which were in Tokyo, eight in Korea and the rest in China. Jon Tanaka adds that the company?s AG Asia Realty Fund II can acquire as much as $1.23 billion of real estate in China, South Korea and Japan.
The company?s strategy is to buy properties in the country that they can upgrade and redesign to boost the number of rents. Aside from real estate, Tanaka says that logistics and hospitality properties are also doing well in Japan.
Meanwhile, Tokyo?s vacancy rate increased to 9.43 in June from 9.4 percent a month earlier, said Miki Shoji Co., an office brokerage company in the country. Also, the average rent in five wards increased to about 16,763 yen ($210) per tsubo last month. Tanaka says that when a building starts to lose tenants, the owners will become more reluctant to invest in the building because they will lose income; and this is where they come in. They believe that this can create investment opportunities for them.
Tanaka says that China could also offer investment opportunities for them. Though the Chinese government imposed restrictions on home purchases and other curbs like higher mortgage down payments, Jon Tanaka believes that this could help Angelo Gordon source opportunities because local developers may not have access to capital and will have to look for partners like them.
RREEF data also states that in the UK, total return for properties increased as high as 15 percent in 2010 but fell by half in 2011 while properties in the US increased for two straight years. According to Tanaka, compared with major markets like those two, core asset prices in Tokyo have not appreciated very much, and they think there is upside potential as numbers improve.
Original Article: BloombergPhoto Credits: ykanazawa1999 via Flickr Creative Commons??Source: http://www.realestate.co.jp/2012/07/19/angelo-gordon-co-searches-for-properties-in-japan/
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