UBS Asset Management develops a multi-family project in Tokyo
UBS Asset Management has launched a multi-family development project with 563 rental apartments across 18 floors in east-central Tokyo (Kiba) worth 230 million dollars upon completion. These dimensions make it the largest multi-family effort of UBS AM to date in Asia’s second-largest economy. Also, this is the fourth multi-family deal of UBS AM in Tokyo this year, having earlier bought two development sites and a newly built property that together added more than 270 units to the portfolio.
Hongkong investor makes maiden Japan residential purchase
Asian investors show continued interest in Japanese real estate. This time, Arch Capital Management from Hongkong has acquired 25 multi-family assets in Tokyo for an undisclosed amount, marking the Hong Kong-based company’s first investments in Japan.
Managing director Terence Lo revealed the news in a LinkedIn post and made some familiar arguments about the attractiveness of Japanese residential real estate: “We are pleased to announce our first investment into Japan with the acquisition of 25 multifamily assets all within Tokyo’s 23 wards. The assets are running at near full occupancy and are all well-located within popular wards that are within a short walk from the nearest train station. We like the strong fundamentals and defensive nature of the Japan residential market and look forward to expanding the ARCH footprint to other key cities within Japan and into other asset classes.”
Frasers Property makes maiden Japan acquisition
Another foreign investor has entered the Japanese real estate market: Frasers Hospitality, a strategic business unit of Frasers Property from Singapore, has formed two joint ventures with established real estate players, Tishman Speyer and Alyssa Partners, in China and Japan, respectively. As part of these joint ventures, Frasers Hospitality has entered into two sale and purchase agreements to acquire its inaugural premium rental apartment assets in Shenzhen, China and Osaka, Japan with a combined asset value of approximately $170 million. The 124-unit premium rental apartment in Osaka, Japan, is situated in the major commercial district Namba, and is within walking distance of the nearest subway station (the picture shows Namba Station entrance). The property is currently operational and at close to full occupancy.
Hines continues foreign investment spree
U.S. developer Hines has acquired five multifamily properties in Japan on behalf of the firm’s flagship pan-Asian fund. The 290 units with 9,300 square meters in Tokyo and Kyoto will be managed under the sustainability-focused Cavana brand and target urban dwellers in major Japanese cities, Hines said.
The acquisition is the second multifamily transaction for the Hines Asia Property Partners core-plus fund, following the purchase of 11 multifamily assets in Japan late last year. Chiang Ling Ng, chief investment officer for Asia at Hines, described the country’s multifamily segment as a resilient, non-discretionary sector and a stabilizer for a blended core-plus strategy.
6-asset purchase – SG’s SilkRoad Property enters Japan
Another Asian investor expands investments in Japanese real estate. Singapore real estate investor SilkRoad Property Partners has completed the purchase of six assets in Tokyo at a total acquisition value of 19.5 billion yen (134 million euros) as it looks to establish a presence in Japan. As part of the third instalment of its pan-Asian value-add fund series Silk Road Asia Value Partners II (SAVP II), the fund manager has added an office building in Central Tokyo and five multifamily properties in major commuter cities in Greater Tokyo, according to a company statement. SilkRoad’s multifamily strategy is part of its focus on the residential sector that covers senior housing, co-living, and other asset classes in the category. With current assets under management of approximately $2 billion across four funds, the firm is eyeing expansion in Asia’s core markets across Singapore, Japan, Hong Kong, and China.
Three Tokyo apartment buildings get a foreign owner
Foreign investors keep investing in Japan. The Japanese real estate company Ascot Corp., a part of the Ping An Group from Shenzhen in China, has acquired three rental apartment buildings in Tokyo with a total of 116 apartments, one building was completed in February and two will follow until the end of the year. Ascot Corp. (headquartered in Shibuya, Tokyo) formed its first private fund through a joint venture with the Chinese company Ping An Insurance in May 2022. At that time, Ascot announced plans to acquire MF residential, senior living facilities, and student housing from external developers and funds.
CapitaLand Investment acquire multifamily assets in Osaka
Osaka is moving into the focus of foreign investors in Japan: Singapore’s CapitaLand Investment has agreed to buy six rental housing assets in Osaka for S$141.4 million ($105.9 million). This deal marks the first multi-family acquisitions for the firm’s flagship regional core-plus fund. The projects are to be completed in phases from May 2023 to June 2024. Earlier, the Ascott unit of CapitalLand hat acquired the global serviced apartment provider Oakwood in 2022. The picture shows Oakwood Hotel & Apartments Azubu in Tokyo which opened in January 2022.
KKR, Gaw Capital acquire Hyatt Regency Hotel in Tokyo
Another big foreign deal in Japan: In its first hotel acquisition in Japan, the global investment company KKR from New York has teamed up with Hong Kong’s Gaw Capital Partners to buy the Hyatt Regency Tokyo from Odakyu Electric Railway.
The luxury hotel in Tokyo’s central Shinjuku special ward will be acquired for an undisclosed amount by funds managed by the two investment firms. The new owners plan to renovate the hotel that opened in 1980 and is the oldest Hyatt property in Japan.
Odakyu said it expects to make a JPY50 billion (about 352 million euro) profit on the sale, but the railroad declined to say how much the property was sold for.
AXA IM Alts acquires another Japan portfolio
The French insurance company extends its residential footprint in the APAC region with the acquisition of a 33-asset portfolio in Tokyo, Greater Osaka, and Nagoya for about €420 million (¥59 billion). The seller was an institutional investor advised by J.P. Morgan Global Alternatives Real Estate Asia-Pacific. The portfolio is made up of high-quality, modern residential buildings, comprising predominantly one-bed apartments, with fourteen of the assets having been awarded a DBJ Green Building Certification.
Singapore investor buys residential assets for $100 million
TE Capital acquired two portfolios with 16 new Tokyo multifamily residential assets. The more than 400 units with 11,600 square meters are in good locations of Tokyo’s 23 wards with an average of 6 minutes walking distance to the nearest train station. Construction is set to be completed in 2024. According to the adviser Colliers, the deal was worth $100 million.