Mitsubishi Prepares to Launch U.S-Based REIT

November 19, 2019 | Investments, News, Real Estate

Nikkei reports the Japanese firm wants to hold $1.5 billion in assets.

Japanese trading giant Mitsubishi Corp. will launch its first U.S.-based real estate investment trust.

Nikkei reports that the new trust will aim to build $1.5 billion in assets over the next five years. It will also focus on suburban logistics and urban rental housing.

The group is looking to bolster income-producing assets at a time that interest rates sit at record lows. Bond prices have made real estate attractive investments. Further, the trust aims to invest in e-commerce centers to capitalize on growing U.S. ecommerce demand.

Nikkei says it will also tap into “urban residential buildings will focus on those for dual-income, middle-class families, promising a steady flow of rent income.”

The REIT is expected to generate an annual yield between 4.5% and 5%, according to the report.

Mitsubishi Corp. to Launch U.S. REIT

Meanwhile, the Mitsubishi Corp. REIT will be independent and based in the United States. Properties set for the portfolio include a 25-story condo building in Chicago. It will also include a 340-condo unit in Dallas, Texas.

Initial investors include a number of Japanese banks and insurance companies. The fund also raised $300 million from seven investors by the end of September 2019.

Recent: CBL Properties Settles with Activist Investor

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