Institutional investors going outbound via indirect investments

  • Japanese outbound investment in H1 2019 was also active, increasing three-fold compared with the same period last year. Asia was the most popular destination for investment.
  • The period saw an increase in acquisitions by Japanese real estate funds formed by developers and trading companies, with many of these funds attracting investment from institutional investors.
  • Some Japanese institutional investors are becoming more cautious due to potential economic downturn, in addition to relatively high hedging cost. CBRE therefore believes outbound investment by Japanese investors may not necessarily maintain the same rate of growth.  That being said, outbound investment from Japan is being driven by the strong appetite among developers and trading companies to expand their overseas businesses as well as a desire among institutional investors to seek higher returns and greater regional diversification. These trends are unlikely to change, and should contribute to further growth in outbound investment.