Aviva and Secured Capital raise $90m to take Tokyo Recovery fund to $212m

Aviva Investors has raised another $90m of equity in a second closing for the Tokyo Recovery Fund. The new money takes the fund’s capital to $212m.

Aviva, and asset management partner and Japan specialist Secured Capital, hope to raise a total of $250m,which will be geared by 50% to invest $500m in Tokyo offices. Aviva insurance group and PGGM Investments made the first, $122m of commitments, last November.

Ian Hally, Aviva Investors’ CEO in Asia, said: “The second closing, at a time when fund raising is extremely difficult, is testament to both our strategy and the attractiveness of the Tokyo real estate market.”

Naoya Nakata, managing director at Secured Capital, said Tokyo office values were far below pre global financial crisis levels. The first investment by the fund, which has a return target of 10-12%, is Tokyo’s Meguro Place Tower.