The Perils of Japanese Property

Australian investors have been able to buy Japanese commercial property, via the ASX, since 2004. As the REIT bubble began to form, Babcock & Brown Japan hit the boards in April 2005. It was followed by Rubicon Japan in October 2006 and Galileo Japan in December of the same year. I’ve been intrigued ever since. All three sported distribution yields of 8-10%, high occupancy levels and interest coverage ratios of more than four times, implying conservative levels of debt by Australian standards. Commercial property in Japan yielded approximately 6% and the banks were willing to lend at interest rates...

Osaka Property.jpg


{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles