The Government of Singapore’s property arm, GIC Real Estate, has formed a joint venture with Japan's Sumitomo Corporation to invest up to 150bn yen (£620m) in Japanese property.

GIC RE said in a statement that the joint venture would invest in existing retail property and in projects under development in Japan over the next two years. It also plans to buy underperforming assets with a view to turning them around.

‘The target markets for the joint venture are the metropolitan areas of Tokyo, Osaka, Nagoya and other major cities,’ GIC RE said.

Sumitomo Corporation will be the asset manager for the joint venture and be responsible for sourcing, development and operations. GIC RE manages a multi-billion pound portfolio of property in 30 countries, putting it among the world's 10 biggest real estate investors.