Insurance Companies investing in Japan Property

 

Why Life Insurance Companies are currently

focusing on Real Estate Investment?

 

1.Do you know that major life insurance companies are entering into condominium investment?
As we all know, life insurance companies are professional asset management companies.

In a Japanese news paper an article says that Dai-ichi Life Insurance Company, that has a total assets of $346.9 billion (2015), has starting investing in condominiums.   

・Residential investment has higher occupancy rate than office buildings
・Changes in rents tend to be minimal
・Rent income can be obtained stably
*Condominiums are starting to become the new attraction for investment destinations gradually replacing government bonds.

 

2.Not only in domestic companie have started to focus in Japan real estate investment the past few years, but large companies from overseas have noticed the focus and have also entered the Japan real estate investment one after another since before the Olympics has been confirmed.
American asset manager "Goldman Sachs" and
Large enterprises such as Italian insurance company "GENERALI"
Together with Japanese life insurance companies are entering real estate investments such as office building and rental apartments

Bridge power is available in central Tokyo due to high convenience while legal offices and consulting firms, mainly foreign companies are starting to move their offices here actively.
With rising office demands rents are expected to rise in the center of downtown area in the future, the expectation for the rise in land prices due to the Tokyo Olympic in 2020 is also a strong factor.

Source:Tokyo net worth