CDL invests in 25 freehold residential assets in Japan for $321.9 mil
Twenty-five top-notch and freehold residential assets in Japan were recently purchased by reputable real estate developer City Developments Limited (CDL) for JPY35 billion ($321.9 million). the affiliates of BGO, a profound global real estate investment manager, acquired the interest, and will entrench a part of CDL’s private tenancy sector portfolio.
Comprising a total of 836 units, including four commercial units, The properties have an average age of less than two years old and are situated in Tokyo’s 23 wards. All of the twenty-five not fluid properties are located within a short stroll from a train station subway network. Three of the assets are located in affluent premium residential areas within Tokyo’s central five wards.
The investment is said to have strong potential due to the rebound of economic activities and pent-up demand for rental lodging facilities in Tokyo. “Amidst the bleak and gloomy worldwide global economy, Japan has become an appealing destination for international institutional investors, securing the portfolio’s potential to benefit from both steady rental growth and sustainable capital appreciation,” says CDL in a Sept 28 statement in their recent largest private rented sector transaction in Japan.
The attractive and appealing interest rate environment in Japan offer investors a favorable strategic chance for the organization to cast a wider network of our residential leasing portfolio through a rare off-market transaction for well-performing assets,” says CDL’s group CEO, Sherman Kwek.
“Despite bleak economic uncertainty over the past several years, our Japan residential portfolio has remained strong, with stable rental growth and strong occupancy of above 95%. This investment marks the group’s entry into Tokyo’s rental housing market, enabling us to further scale up in this asset class while leveraging on the sector’s strong growth potential,” he elaborated in details. “This strategic shift is in line with our strategy of widening our network in the global living sector to enhance our recurring income.”
Following the legal procedure of the transaction, CDL’s Japan private rented sector portfolio located across Tokyo, Osaka and Yokohama has tripled to 38 assets with a total of over 2,100 units. The portfolio has an asset value of over JPY70 billion.
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