B
rookfield Asset Management is stepping up its real estate investments in Japan, following a $1.6 billion deal to buy a stake in Tokyo's Gajoen complex and a large plot of land for logistics development near Nagoya. The Canadian investment firm acquired 1 million square feet of land near Japan's manufacturing hub, where it plans to build a major warehouse. Brookfield took a stake in the mixed-use Gajoen complex from China Investment Corp. and LaSalle Investment Management.

    The deals highlight a surge in foreign investor activity in Japanese real estate, driven by a weak yen, cheap financing, and rising demand for assets like hotels and apartments. "You're going to see us doing a lot more in Japan," said Andrew Burych, Brookfield's managing partner and head of East Asia real estate.

    Brookfield plans to focus on logistics, mixed-use complexes, and hospitality assets, with potential transactions valued between $50 million and $1 billion. The firm is also eyeing opportunities to invest in Japanese real estate investment trusts trading below their net asset value. With a growing pipeline of deals, Brookfield expects to spend more than the $1.6 billion invested in Japan last year.

    The volume of investment in Japanese real estate jumped 40% in the first nine months of 2024, reaching an estimated ¥5 trillion ($32 billion) for the year. Brookfield has a team of four real estate professionals in Tokyo and others working on Japan deals from China and Singapore.