CIC buys 1 billion dollars for Japanese real estate loan portfolio

According to the WSJ report, last year, CIC joined Blackstone in buying a Japanese real estate loan portfolio worth about $1 billion from Morgan Stanley. Since the financial crisis, CIC has shown growing interest in distressed real estate assets, particularly in the US. America's Distressed property prices have attracted interest from foreign investors around the world. The value of investment today pales in comparison to the 2007 before the financial crisis.　　Overseas investment peaked at $8.7 billion trillion in the third quarter of 2007. Last year, CIC and Harvard University donated funds to buy the latter's stake in several U.S.-focused real estate funds at about 500 million dollars.　　CIC has pledged to invest $1 billion in several funds administered by Brookfield Asset Management and Cornerstone real estate advisers. In Japan, after the bursting of the asset bubble about 20 years ago, real estate funds run by big investment banks bought many bad assets. These property funds have made a big profit in 2007, when the prices of these assets rose in Tokyo. Since then, the value of these assets has fallen sharply and banks are hoping to divest them. Richer Asian investors came to rescue, and their acquisitions in 2010 surged, to 18, with a total value of about $372 million trillion.　　In Japan's "lost decade", the role of these Asian investors and new entrants such as Blackstone may not be as simple as investors, but given the greater transparency of these assets today, the risk to investors is even smaller. Investing in real-estate funds rather than other tangible assets is one way for CIC to intervene in the market and avoid some political backlash. In general, foreign investment in America's main assets would provoke a political backlash. Given the political sensitivities between China and Japan, the move is a prudent strategy that CIC can take in Japan. "Author:" Financial "comprehensive report"