Aberdeen Investments (“Aberdeen”), a global investment company, announced the acquisition of two high-grade residential rental properties in Japan – WORVE Tokyo Kiba (“Kiba”) and Dimus Negishi– under its Japan Residential Property Strategy.
In Japan, rental growth is emerging as a more significant driver of Japanese property yields. In Tokyo, average multifamily rents across the 23 wards have increased 6.4% year-on-year, supported by robust net migration, accelerated wage growth, and elevated for-sale condo prices, which continue to underpin strong leasing demand.
In October 2024, Aberdeen Invetsments announced its expansion of its Living business into the Japan market, having been awarded a mandate by Dutch pension fund manager PGGM to manage a portfolio of 3,300 rental homes in Japan. By November of the same year, Aberdeen’s total residential investments globally had surpassed EUR 10 billion.
Marc Pamin, CEO of Living at Aberdeen Investments said: “The Japanese market is an exciting, fast growing addition to our global Living business, which broke the EUR 10 billion assets under management milestone last year. We are deeply committed to this market and continuously strengthening our investment capabilities to offer superior services and innovative investment solutions to both Japanese investors and those looking to invest in Japan. These acquisitions underline our ambition to excel in the Japanese real estate market."
Both properties are strategically located within Tokyo's 23 wards, offering convenient access to public transportation and situated in highly sought-after residential areas.
WORVE Tokyo Kiba (“Kiba”): A modern, 12-story building completed in November 2022, Kiba offers 125 residential units, ranging from studio apartments (25 sqm) to one-bedroom (32–33 sqm) and two-bedroom units (50 sqm), as well as one small retail unit. Designed to cater to both single occupants and small families, the property is currently leased up to 95.8% as of January 2025.
Dimus Negishi (“Negishi”): Completed in February 2024, this 7-story building consists of 71 residential units, including studio apartments (26 sqm), one-bedroom units (43 sqm), and two-bedroom units (48 sqm). Negishi primarily targets single occupants, and as of January 2025, the property is leased up to 93.8%.
Harumi Kadono, Head of Japan Real Estate at Aberdeen Investments, said: “Japan has been one of the markets where we hold the highest real estate investment conviction in APAC. At the same time, the living and residential sector ranks highly in our investment preferences globally. In particular for Tokyo residential properties, the investment case remains robust. Vacancy rates have historically been tight, and trends underpinning residential leasing demand – such as net migration, improved wage growth, and increased female labor participation/dual-income households – are likely to endure. We believe this asset class offers an excellent opportunity for global investors seeking to diversify their portfolios while achieving superior long-term returns and stable income.”
As an active participant in the global real estate market for over 50 years, Aberdeen has extensive experience in managing direct and indirect real estate investments, real estate multimanager services, listed real estate, and real estate debt solutions. As of 31 March 2025, Aberdeen managed £35 billion in real estateassets and around 1,000 properties globally, with over 300 real estate investment professionals.
