AM Alpha, a global family office for real estate investments, has sold a newly constructed residential asset in Japan’s capital.
The 10-storey building known as Alpha Prime Toyocho is located in the Koto-ku district in Tokyo.
AM Alpha acquired the property in 2022 while it was still under construction and was able to significantly increase the value of the property through a successful leasing campaign.
Masatomo Okamoto, AM Alpha’s head of Japan, said: “We are pleased that we have once again created added value for our investment partners with this sale.We have been active in the Japanese real estate market for over 10 years. Our local presence and direct market access enabled us to identify this investment opportunity and successfully implement it as part of a ‘develop-to-core’ investment strategy.”
Okamoto added that although the building was expected to yield an attractive return, AM Alpha opted for an early sale to “allow us to realise the value growth and reinvest the capital in new, growth-oriented projects that align with our long-term strategy”.
He said that the outlook for Japan’s multifamily housing sector stays positive, with economic growth boosting employment and wages, and driving demand for housing. At the same time, the Japanese housing market has a limited supply of new construction projects, he added.
“Tokyo, as Japan’s economic powerhouse, will particularly benefit from this trend. The Greater Tokyo real estate market, with its 36m residents, is vast and very liquid. These are perfect conditions for real estate investments for institutional investors, especially for foreign investors who also benefit from a weak yen,” Okamoto concluded.
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