Nippon Life Insurance Co., which is seeking to gather about ¥300 billion ($2.4 billion) for what would be Japan's largest private real estate investment trust, is targeting returns of 4 percent as yields on government bonds languish near zero.

Nippon Life Realty Management Inc. will seek investments from large Japanese investors such as pension funds and banks, said Takashi Tanizawa, president of the company that will manage the fund. The fund, which will open next year, is targeting assets of about ¥100 billion within the first year and about ¥300 billion over the mid-to-long term, larger than any existing offering of its kind, according to Nippon Life.

The nation's largest insurance company is looking to appeal to pension plans and big institutions by offering the prospect of higher returns as the country's 10-year government bond is paying a yield of about 0.3 percent. While it is harder for investors to exit private REITs than publicly traded ones, they are attractive to investors seeking stable returns because they are less vulnerable to market swings.