Goldman Sachs Targets USD500m for Japan Real Estate Fund

Japan real estate fund fundraising is accelerating as Goldman Sachs seeks to raise about USD500m for a Japan-focused property vehicle, aiming to capture a rebound in the market driven by low borrowing costs and a weak yen, sources said.

The value-add Japan real estate fund has been marketed to investors in recent months and plans to invest across data centres, logistics, residential and hospitality assets, targeting mid-teen returns.

A first close is expected by end-March. Japan real estate fund activity has attracted global capital as interest rates remain relatively low despite gradual tightening by the Bank of Japan, while the depreciated yen boosts dollar-based buying power.

Rivals including Morgan Stanley, KKR, PAG and Blackstone have also stepped up Japan deals as investment volumes recover.