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AXA IM Alts enters Japanese retail via Tokyo Harajuku acquisition - InforCapital

AXA IM Alts enters Japan’s retail market with the acquisition of a prime fully-let asset in Tokyo’s Harajuku–Omotesando fashion district.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Real Estate.
  • Geography: Japan.

Analysis

AXA IM Alts has acquired a fully let retail asset of approximately 25,800 sq ft in central Tokyo’s Omotesandō–Harajuku fashion district, marking its entry into the Japanese retail market. The asset is located on one of the area's most iconic high-street corridors.

This investment follows a wave of recent premium high-street retail transactions in the same corridor. In mid‑2023, an Omotesandō retail building sold for over ¥5.38 billion (~$37 million) along Kotto‑dōri, reported with cap rates around 3.4% and anchored by international fashion tenants.

Separately, in February 2025, Hong Kong-based Gaw Capital, alongside Singapore’s Patience Capital Group, completed the acquisition of Tokyu Plaza Ginza—a flagship Tokyo mall—for over $1 billion, one of the largest retail transactions in Japan in 2025.

The Omotesandō–Harajuku corridor—Tokyo’s equivalent of London’s Bond Street or New York’s SoHo—is experiencing robust rent growth. According to CBRE, in Q1 2024, rents reached over ¥285,000 per tsubo per month in Omotesandō, up nearly 15% year‑on‑year, as luxury brands renew storefronts and tourists & locals drive consistent footfall.

The Harajuku district is also undergoing rapid redevelopment: Tokyu Land’s new Tokyu Plaza Harajuku Harakado (circa 2024), with rooftop gardens and curated retail, exemplifies rising demand for experiential shopping formats in flagship settings.

AXA IM Alts’ acquisition aligns with its broader Asia Pacific expansion strategy and strong interest in central Tokyo real estate. Other recent Japanese investments by the firm include a €51 million residential portfolio across prime Tokyo submarkets, and a €420 million 33‑asset multifamily portfolio spanning Tokyo, Osaka, and Nagoya with over 2,100 units.

By targeting a fully let, high-visibility retail asset on Tokyo's premier fashion street, AXA IM Alts positions itself in a resilient sector attracting high‑quality tenant demand, strong rent momentum, and strategic investor interest in trophy retail assets.