Up to A$1.5bn worth of Japanese property owned by trusts listed in Australia is for sale.

The assets account for about 23 per cent of the $5.6 billion, as of 31 December, worth of property owned by Babcock & Brown Japan Trust, Galileo Japan Trust, Rubicon Japan Trust and Challenger Kenedix Japan Trust.

'These assets are for sale, but finding a buyer is difficult.' CB Richard Ellis Greater Asia investment property executive director Reid Mackay said.

'Some of these assets were compelling (acquisitions) three years ago, but they are no longer as compelling today.'

Mackay said transactions had fallen by 70% and the Japanese market was 'in sleeping mode' due to a shortage of bank credit.

The Australian