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Fortress bets on Japan property

The fund manager plans to invest bulk of its third US$1.1b Japan fund in hotels, says regional tourism will prove resilient.

David Yong and Finbarr Flynn

Published Sat, Mar 05, 2016 · 5:50 am
ENTOURAGE: The government relaxed visa rules for tourists from China, India, Indonesia, the Philippines and Vietnam under Mr Abe, fuelling a surge in Asian visitors. A record 19.7 million tourists visited Japan in 2015, with China accounting for the largest proportion, according to Japan National Tourism Organization.

Reits

Tokyo

FORTRESS Investment Group LLC is betting that one of the real estate industry's greatest contrarian wagers has more room to run.

The manager of US$70.5 billion, which piled into Japanese property after a tsunami and nuclear meltdown battered valuations in 2011, has seen its investments surge after Prime Minister Shinzo Abe's economic stimulus revitalised the industry. Invincible Investment Corp, a hotel-focused real estate investment trust (Reit) managed by Fortress, has returned eight-fold in the past five years, the biggest gain among Reits worldwide. Two of the firm's Japan-focused private equity funds have climbed near the top of their peer rankings.

Now, as slowing Asian growth and a...

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