Daiwa Securities Group Inc. Sets Sights on Real Estate Boom with New Fund
In a strategic move to capitalize on Japan’s surging property market, Daiwa Securities Group Inc. has announced plans to launch a substantial real estate fund. This initiative is set to raise 100 billion yen (approximately S$883 million) through a private fund aimed at both domestic and international institutional investors. The fund, a collaborative effort with Osaka-based developer Samty Holdings and fund manager Hillhouse Investment, underscores Daiwa’s commitment to expanding its asset management operations.
A Strategic Partnership
Daiwa’s General Manager of Asset Management Strategy, Masatsugu Oishi, highlighted the fund’s focus on Japanese rental housing and hotels. These sectors are particularly attractive due to their resilience against inflation, a crucial factor as Japan experiences its fastest consumer price increases in decades. Despite a recent dip in Tokyo’s new condo prices—the first in six years—analysts predict a rebound driven by low apartment supply and rising construction costs.
Navigating Market Dynamics
The real estate market in Japan presents a unique opportunity amidst broader economic challenges. While traditional brokerage services face pressure from a shrinking national population, asset management offers a stable revenue stream. Daiwa’s foray into real estate investment is a strategic pivot to bolster its financial services portfolio.
Market Context
As of June 24, 2025, Daiwa’s stock closed at 992.8 JPY, reflecting a significant recovery from its 52-week low of 773 JPY in April 2025. The company’s market capitalization stands at 1.58 trillion JPY, with a price-to-earnings ratio of 9.37. This financial backdrop underscores the potential for growth as Daiwa diversifies its offerings.
Conclusion
Daiwa Securities Group’s real estate fund is a testament to its adaptive strategy in a dynamic market environment. By leveraging partnerships and focusing on resilient asset classes, Daiwa aims to enhance its asset management capabilities, ensuring sustained growth and stability in its financial services operations.