Nomura Real Estate Holdings Inc is to buy 75% of the UK’s Lothbury Investment Management Group on terms which have yet to be disclosed, according to an announcement from both companies. Lothbury staff will hold the remaining 25% and its chief executive Simon Radford will continue to run the company.
The move abroad is a first for NREHI whose Nomura Real Estate Asset Management subsidiary had 1,379 billion in assets under management at 31 March 2018 when Lothbury had GBP2.1bn (311.7bn yen). The client base of both firms is institutional investors, including pension funds, insurance companies and so on.
Real estate investment opportunities in Japan as constrained by a falling population and the contraction that is likely to produce in the economy. The same aging trend has ensured that pension funds now have more current beneficiaries than contributors and need assets which work as hard as possible.
The transaction, which is expected to close before the calendar year end, is subject to customary regulatory approvals and closing conditions.
© 2018 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes big commitments of money and time. This blog is one of the products of such commitment. It may nonetheless be reproduced or used as a source without charge so long as (but only so long as) the use is credited to www.ijapicap.com and a link provided to the original text on that site.
This blog would not exist without the help and humour of Diane Stormont, 1959-2012