Savills Investment Management completed more than 2.5 billion euros (US$3.03 billion) in transactions globally in 2020, including 2.1 billion euros in Europe and 457 million euros in Asia.
The transactions included nearly 1.7 billion euros of acquisitions and 833 million euros of disposals, resulting in a net investment of 842 million euros. The firm now manages about 21.2 billion in assets globally, a company record.
Savills IM completed 74 transactions across 14 countries in 2020, of which eight exceeded 100 million euros. Notable deals in Asia-Pacific include a high-quality portfolio of nine residential assets in Greater Tokyo.
The firm also launched its first pan-Asian fund, the Asia Pacific Income and Growth fund (APACIG), and the Japan Residential Fund II (JRF II), its first open-ended core fund for Asia and fourth Japanese fund. This followed the final close of the Japan Value Fund II.
Alex Jeffrey, Savills IM’s global chief executive, comments: “The impacts of Covid-19 are unfortunately continuing into 2021, but they will subside. If investors can see through the short-term effects of the pandemic, then they can leverage longer-term themes to their advantage. There are opportunities in market sectors showing greater resilience, such as logistics, residential and food retail. Given the lower-for-longer interest rate environment, the yields available in real estate are all the more attractive.”
Tom Silecchia, the firm’s co-head of Japan, adds: “Japan remains a key destination for institutional investors, more so in the multifamily sector than ever before. At this stage in the cycle, mid-market multifamily residential is seen as very stable and defensive. The significant weight of capital targeting this sector suggests yields will remain under downward pressure.”