Two Tracks
Core & Value-add
We don't chase a single style. Around each investor's risk appetite and return
objectives, we allocate flexibly across two tracks — Core, anchored in stable rental cash flow, and
Value-add, where active renovation and repositioning create excess returns. Both draw on AA's sourcing
network, institutional investment structures and on-the-ground capabilities in Japan.
Core
Value-add
Target assets
- Multifamily or offices in Japan's three major metros (Tokyo / Osaka / Nagoya)
- Logistics warehouses on core industrial corridors
- Ski or beach resorts
- Commercial buildings in prime districts of Tokyo, Osaka, etc.
Characteristics
- Under ~10 years old, fully let or near-term lease-up potential
- Gross yield typically 4.0–5.0%
- Materially undervalued; potential unlocked via renovation or development
- Levered IRR typically 15–20%
Approach
Add prudent low-cost leverage; income-led with no major capex; hold 3–5 years. Suited to stable allocations focused on hold-period income.
Acquire at a clear discount, invest in major renovation / brand change / re-opening, or redevelop; exit after stabilisation. Typical cycle 3–5 years.
AA edge
- Deals largely sourced direct from sellers with no brokerage fee, controlled pricing and an adequate DD window.
- Assets acquired and held through institutional investment structures, matched with low-cost non-recourse Japanese bank debt and optimised for tax.
Expertise in acquiring near-completion buildings at a discount, with pre-leasing to reach near-full occupancy at completion.
A track record across large, well-known value-add projects, with diverse sourcing channels and asset-by-asset bespoke strategies.
AA View
As rates normalise and rental growth diverges, passive holding is no longer enough; the market rewards
returns created through operations, renovation and repositioning — a strong fit with AA's small-to-mid-size,
improvable, repositionable projects.
