Goldman Sachs Group is seeking to raise about $500 million for a new Japan-focused real estate fund, according to people familiar with the matter.
The New York–based investment bank has been approaching investors over recent months. This effort comes as Japan’s property market regains interest from global funds, supported by low borrowing costs and a weaker yen.
The fund will follow a value-add investment strategy, which typically targets mid-teen returns. It will focus on data centers, logistics properties, residential assets, and hospitality projects.
According to one person, the fund aims to reach its first close by the end of March. The person requested anonymity because the information is private.
While Goldman has completed Japanese real estate deals in the past, most of those investments were made using its own balance sheet rather than third-party capital.
A Tokyo-based spokesperson for Goldman Sachs declined to comment.
Japan-focused real estate funds have drawn steady global interest in recent years. This contrasts with other major markets, where higher interest rates and geopolitical uncertainty have affected investor sentiment.
In September, Morgan Stanley said it had raised ¥131 billion for a Japan real estate fund.
Even after the Bank of Japan raised interest rates to their highest level in three decades, borrowing costs in Japan remain lower than in most developed markets. In addition, the weaker yen has improved purchasing power for dollar-based investors.
Recent transactions highlight the scale of activity in Japan’s property market. Last month, KKR and PAG agreed to acquire parts of Sapporo Holdings’ real estate business in a deal valued at ¥477 billion, or about $3 billion. The transaction ranks among Japan’s largest property deals in 2025.
Separately, Blackstone announced a deal in December worth more than ¥100 billion to acquire a logistics facility in Tokyo.
Japan’s real estate investment volume rose 22% year-on-year during the first three quarters of 2025, reaching ¥4.71 trillion, according to data from Jones Lang LaSalle.
Over the same period, global property investment volume increased by 21%, reflecting a broader recovery in real estate capital flows.
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