Sumitomo Trust, Axa To Set Up Y100bn Real Estate Fund

Sumitomo Trust & Banking Co. and French insurance giant Axa Group have teamed up to launch an investment fund targeting real estate in Japan, according to Nikkei. Japanese and overseas investors are expected to put up 50 billion yen for the fund. In addition, financial institutions will likely provide 50 billion yen in loans. With 100 billion yen at its disposal, it is expected to become one of the largest real estate funds established since the global financial crisis deepened last fall. Investment will begin as early as the first half of next year, focusing on office buildings in central Tokyo. Sumitomo Trust and Axa see these properties undervalued and plan to pour money into buildings that would bring an annual yield of 6-7%.