Daiwa Real Estate to Set Up Japan’s First Health-Care REIT

December 26, 2013 Leave a comment

Daiwa Real Estate to Set Up Japan’s First Health-Care REIT

Daiwa Real Estate Asset Management Co., a unit of Japan’s second-largest brokerage, will set up a health-care real estate investment trust that will own nursing homes and hospitals in the world’s fastest-aging society. Daiwa Real Estate plans to start operating the trust with about 10 billion yen ($96 million) as early as March and list the shares on the Tokyo Stock Exchange by mid-2014, the company said in a statement through the bourse today. The unit also manages Daiwa Office Investment Corp. (8976) and Daiwa Residential Private Investment Corp. with a total of 400 billion yen assets under management, it said.The REIT will be the first of its kind in Japan, according to Daiwa Real Estate, as it seeks to benefit from rising demand for elderly care in the country where one in four people will be older than 65 next year. That compares with 9.6 percent in China and 14 percent in the U.S., according to data compiled by the U.S. Census Bureau.

Japan is the fastest aging society in the world, according to the Organization for Economic Cooperation and Development. The number of people using elderly care facilities is estimated to increase by 25 percent to 1.15 million in 2015 from 920,000 in 2011, according to data from Japan’s Cabinet Office.

Shinsei Bank Ltd. (8303), the Japanese bank partly owned by J. Christopher Flowers, has also said it plans to list a health-care REIT in 2014.

To contact the reporter on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net

Filed under Macro Trends

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment