* Residential REIT assets could reach up to $910 mln
* Kenedix considers health-care REIT -president
By Alex Frew McMillan
HONG KONG, Nov 16 Japanese property
manager Kenedix Inc plans to list a residential real
estate investment trust in mid-2012, after winning a license for
the fund last month, company president Atsushi Kawashima said on
The REIT, Kenedix Residential Partners, will have 30 billion
yen to 70 billion yen ($390 million to $910 million) of assets,
Kawashima said. Since it will fund around 40 percent of that
with debt and the rest with equity, the initial public offering
would give it a market capitalization of 18 billion to 42
billion yen, he added.
The IPO is planned for the "middle of next year, depending
on the market," Kawashima said on the sidelines of the MIPIM
Asia real estate conference in Hong Kong.
It will be the third REIT from Tokyo-based Kenedix, which
was set up in 1995 to handle the Japanese real-estate operations
of U.S. property investor and manager Kennedy-Wilson.
Kenedix already operates a listed logistics fund, the Japan
Logistics Fund, and Kenedix Realty Investment Corp., which
focuses on mid-size office buildings. Kenedix had 1.1 trillion
yen in property assets under management as of the end of
The company is also looking at developing a health-care
REIT, since it manages a small amount of health-care property,
but "the liquidity of health care is very limited," Kawashima
About 60 percent of the residential REIT's property will be
in Tokyo and 40 percent in the rest of Japan. Kenedix currently
manages 213 billion yen in assets in residential properties,
with new developments being sold into the residential REIT.
"We have lots of residential in our private funds,"
Kawashima said. "(That) will be the future pipeline, so that
investors understand the small J-REIT can grow."
After slowing to a crawl following the March earthquake in
northern Japan, the J-REIT market, the largest in Asia, is once
again showing signs of life.
The fund is seeking to sell 50 percent of the shares in the
IPO to overseas investors, with the rest going to Japanese.
Global Logistic Properties is also planning to
list a REIT that could raise at least 100 billion yen in an
offering expected by the end of the year. That would mark the
first IPO for a Japanese REIT in four years.
The Ministry of Land, Infrastructure, Transport and Tourism,
which together with the Financial Services Agency licenses REITs
in Japan, says it has several applications pending for new
REITs, including one focused on shopping centers and multiple
listings focused on logistics.