Daiwa Real Estate to Set Up Japan’s First Health-Care REIT

Daiwa Real Estate Asset Management Co., a unit of Japan’s second-largest brokerage, will set up a health-care real estate investment trust that will own nursing homes and hospitals in the world’s fastest-aging society.

Daiwa Real Estate plans to start operating the trust with about 10 billion yen ($96 million) as early as March and list the shares on the Tokyo Stock Exchange by mid-2014, the company said in a statement through the bourse today. The unit also manages Daiwa Office Investment Corp. and Daiwa Residential Private Investment Corp. with a total of 400 billion yen assets under management, it said.

The REIT will be the first of its kind in Japan, according to Daiwa Real Estate, as it seeks to benefit from rising demand for elderly care in the country where one in four people will be older than 65 next year. That compares with 9.6 percent in China and 14 percent in the U.S., according to data compiled by the U.S. Census Bureau.

Japan is the fastest aging society in the world, according to the Organization for Economic Cooperation and Development. The number of people using elderly care facilities is estimated to increase by 25 percent to 1.15 million in 2015 from 920,000 in 2011, according to data from Japan’s Cabinet Office.

Shinsei Bank Ltd., the Japanese bank partly owned by J. Christopher Flowers, has also said it plans to list a health-care REIT in 2014.

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