Japanese real estate investment manager Alyssa Partners and Mitsui & Co Digital Asset Management have teamed up to acquire a premium residential tower in Chiyoda Ward, Central Tokyo.
The two firms said they have acquired the Higashi Kanda Terrace Residence in partnership with a third domestic “institutional investor with a long history of investing in real estate in Japan”.
The 132-unit Higashi Kanda Terrace Residence, a high-quality apartment complex completed in 2018 that includes two retail units, was acquired for an undisclosed sum.
Chedli Boujellabia, managing partner, CEO and Co-CIO of Alyssa Partners, said: “We are excited to establish a tri-party joint-investment vehicle alongside Mitsui & Co Digital Asset Management to acquire a sizable apartment building in Central Tokyo. Given its prime location and the quality of the building, the asset is well positioned to maintain its high occupancy rate and capture future rental growth.
“This latest acquisition is reinforcing Alyssa Partners’ leading position in the Japanese residential sector with a current residential portfolio of circa ¥270bn (€1.5bn) across 152 properties and more than 7,500 apartment units across the major Japanese metropolitan cities.”
Hirokazu Deki, CIO at Mitsui & Co Digital Asset Management, said: “We are pleased to collaborate with Alyssa Partners on this property which represents a large-scale residential asset with strong brand equity and superior accessibility driven by its prime location. Investment opportunities that satisfy comparable conditions are extremely limited, making this a highly distinctive opportunity within the context of a security token offering.
“We believe this offering provides fund investors with access to a scarce, institutional-grade residential asset. Going forward, while continuing to manage and invest across a diverse range of asset classes, we will maintain a strategic focus on the residential market, particularly in central Tokyo.“
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