Hong Kong-based real estate private equity firm Gaw Capital Partners is increasing investments in Japan to $4 billion in the next two years because of the weakening yen.

The asset manager will invest about $3.5 billion to $4 billion in Japan over the next 18 months to two years. That’s on top of $1.6 billion in the 18 months by June, according to the company.

Residential properties in Japan generate about 3.5% to 4% yield while the borrowing cost is usually less than 1%.The Bank of Japan has continued to keep interest rates low, a divergence in policy compared with other central banks including in the US. That’s made the country’s real estate market attractive for institutional investors and residential buyers from Hong Kong.

Gaw is looking to invest in a variety of Japanese assets including residential, office, hospitality buildings and data centers.

Source Via bloomberg.com