EXECUTIVE SUMMARY

• This paper analyses the implications of the emergence of private REITs in Japan and the expected impacts to the industry, by comparing it with other fund types and equivalent products in major markets.

• Momentum is anticipated to pick up given the attractiveness of the open ended direct real estate products while they are still evolving and remain in the early phase. Japan could prove to be the front runner for the open-ended products in Asia.

• There are some reservations to note, however, and we unfold these points, including rules for redemptions and potential conflict of interest.