U.S. Private Equity Firms Seek Bargains in Japanese REIT Market
Commercial Property News reports: Japan has been hit hard by the global credit crunch, particularly the
REIT market, which relies on banks to fund investments. “Banks (in
Japan) are really loath to go into property at all now, even if the
underlying fundamentals are really strong,” Peter Culliney, director of
research at Real Capital Analytics, told CPN.
The good news for firms like Los Angles-based Oaktree is that the
price of Japanese REIT shares is cheap now, he said. Calling them
“low-hanging fruit,” Culliney said J-REITs are trading at a significant
discount.
“It’s smart now to buy. They own property that’s worth a heck of a
lot more than these shares,” Culliney said. “It’s a great opportunity
to buy the best companies. Firms that are being bought into are
probably the strongest firms that are suffering from the market
inactivity.”
View the full article on Commercial Property News: U.S. Private Equity Firms Seek Bargains in Japanese REIT Market
Posted by: Nina Turner