Prospect Asset Management Inc., a Honolulu-based investment fund specializing in Japanese property, plans to tap a Japan government fund designed to support the nation’s real estate industry.

The company will seek $52.5 million from the fund to redeem a bond due in October issued by Prospect REIT Investment Corp., Prospect Chairman Curtis Freeze said in an interview yesterday.
Prospect Asset Management manages the real estate investment trust and holds an 18 percent stake, according to Bloomberg data. The Ministry of Land, Infrastructure, Transport and Tourism and state-owned Development Bank, with support from some private companies, plan to start the fund as early as the end of this month to help REIT financing.
“All REITs are having difficulties in borrowing funds from private financial institutions,” Freeze said. “The fund will be a substitute for the private sector.”