Brookfield Asset Management Ltd. has announced plans to accelerate its real estate ventures in Japan following two high-profile acquisitions in late 2024, with a combined value of $1.6 billion. These deals highlight the Canadian firm’s confidence in Japan’s burgeoning property market, driven by a weaker yen, low-cost financing, and increasing demand for hospitality and logistics assets.
The first acquisition includes a stake in Gajoen, a renowned mixed-use complex in Tokyo, featuring a luxury hotel, banquet halls, restaurants, and office spaces. Notable for its historic Japanese gardens and cultural landmarks, Gajoen is a popular wedding destination and houses the headquarters of Amazon Japan. The property was previously owned by China Investment Corp. (CIC) and LaSalle Investment Management, which acquired it in 2015. Brookfield also plans to renovate public spaces within the complex to enhance its appeal.
The second acquisition involves a 1-million-square-foot plot near Nagoya, Japan’s manufacturing hub. Brookfield aims to develop a 2.4-million-square-foot logistics warehouse on this strategically located land, situated along a key corridor linking Tokyo and Osaka. This project is part of Brookfield’s global opportunistic strategy, reflecting its focus on logistics and mixed-use developments in Japan.
The firm’s intensified focus on Japan aligns with a growing trend of foreign investments in the country’s real estate sector. Jones Lang LaSalle estimates Japanese property investments reached ¥5 trillion ($32 billion) in 2024, marking a 40% year-over-year increase. Brookfield anticipates spending even more in Japan this year, with potential deals ranging from $50 million to $1 billion.
In addition to logistics and mixed-use properties, Brookfield is exploring opportunities with publicly traded and private Japanese real estate investment trusts (REITs) that may offer attractive valuations or liquidity solutions for shareholders. With plans to expand its footprint further, Brookfield’s investment underscores its confidence in Japan’s economic recovery, its inflation-driven real estate appeal, and the long-term prospects of its logistics and hospitality sectors.
