Japan Property Fund

Hua Liang Japan Real Estate Fund

Hua Liang Japan Real Estate fund (“Fund”) is an Asian managed investment fund focused on Japan hospitality industry.

Japanese Yen is a safe haven for the global economy, and a large amount of capital has poured into the market in recent years. Property market is boosted due to both low interest rate and favorable policy on foreigners mortgage loan.

The Japanese economy is enjoying a nice bump from the rising tide of foreign tourists, which lead to a shortage of hotel room supply in tourism destination areas, however provided an opportunity to invest in hospitality industry.

Our Japan property fund combines the expertise of local asset management company (Tokyo mainboard listed) and hotel operator to source the best projects.

Tourism Boom

In 2020, the Tokyo Summer Olympics should be the tailwind that drives total inbound visitors to exceed 40 million.

Structural demand drivers of Tourism Growth:
- Government policy support for tourism growth
- Weak Yen
- Easing of VISA restrictions for Mainland Chinese

Potential Growth

The increase in international tourism and hotel demand in Japan is likely to continue growing after the Tokyo Olympics / Paralympics in 2020.

Osaka was selected to host World Expo 2025 and an integrated resort with a dedicated casino floor on Osaka’s artificial Yumeshima island will be opened around the same period.

JR-Maglev is currently developing a road from Tokyo to Nagoya be completed in 2027 (finally to Osaka). The bullet train will travel in 40 minutes from Tokyo to Nagoya.

Inbound tourism is well positioned to be a core element of the Japanese government's efforts to achieve its economic GDP growth target of JPY 600 trillion in 2020. Target in doubling the numbers of following items: number of inbound tourists, tourists expenditures, cumulative nights spent in regions and repeat tourists.

Casino liberalization

Government announced that three casino resorts will be allowed in the country as part of a first wave of casino liberalization, Osaka Prefecture and Osaka City, Wakayama, and Nagasaki with a request-for-proposal (RFP) process for a casino resort, expected finalized by 2020. Hotels in casino-legalized areas will benefit from tourism booming.

New law (Airbnb)

The annual cap of 180 days for home sharing and stricter rules set by local governments is a victory for the hotel industry, which opposes private properties being used for tourist accommodation.

Hotel shortage

Hotel shortage in the upper-class or higher categories, as well as boutique-lifestyle hotels that can meet the broadening needs of travelers. (CBRE June 2019)

Japan Project Team

Revitalization / Development

Established in 2008, listed on Tokyo Mainboard, core businesses including Real Estate Investment and Development, Real Estate Consulting, and Real Estate Management. A total of 37 projects were completed between 2016-17. The company is headquartered in Tokyo, and its projects are spread over areas in Tokyo, Kyoto, Hokkaido, Fukuoka and other regions.