Amprop in Tokyo property investment joint venture

PETALING JAYA: Amcorp Properties Bhd (Amprop) is planning to invest in high-end real properties in Tokyo, Japan via a joint venture (JV) as part of its strategy to diversify its property investment following its profitable ventures in London.
Its wholly-owned unit, Amcorp Far East Ltd, yesterday entered into a co-investment agreement with Grosvenor Asia Pacific Ltd, NRJ Investment Ltd and True Lead Investment (Nan Fung Group).
The co-investors will incorporate a JV company in Hong Kong known as Grosvenor Development Partnership to invest in a portfolio of high-end residential real estate development projects and commercial value-add projects in Tokyo, Japan.
Amcorp Far East and Grosvenor will each hold a 38.5% stake in the JV with a capital commitment of RM162 million respectively. Nan Fung Group will hold the balance 23% stake with RM97.2 million capital investments.
The co-investment agreement is for a six-year period with up to two extensions of one year each.
Grosvenor Ltd which is a wholly-owned subsidiary of Grosvenor Asia, shall be appointed as the manager of the JV company.
Amprop believes that Japan's strong economic prospects, rapidly rising wealth and on-going urbanisation, has made demand for housing increase in major cities, in particular Tokyo.
Citing data released by the Land Institute of Japan, it showed that more than 80% of residential properties in Tokyo Metropolis being taken up within first month of launching in 2013, as compared to 70% to 77% over the past three years.
Amprop said it plans to leverage on the experience and branding of Grosvenor Asia in Tokyo to ride on the recovery of the Tokyo real estate market.
"The co-invest is expected to contribute positively to the future earnings and growth of Amprop group," it said.