Singapore-listed CDL has acquired two residential portfolios, comprising 25 freehold assets from affiliates of BGO, for JPY35bn (€223m) in Tokyo.
The portfolio offering 836 apartments marks the group’s first foray into Tokyo’s rental housing sector, following its private residential sector (PRS) ventures in Osaka and Yokohama.
CDL’s first PRS project in Japan, Horie Lux in Osaka, was acquired in 2019.
Sherman Kwek, CDL group CEO, said: “Japan’s favourable interest rate environment presents a timely and strategic opportunity for the group to expand our residential rental portfolio through a rare off-market transaction for well-performing assets.”
With the latest acquisition, the group’s single largest private rented sector investment, CDL’s residential portfolio has expanded to 38 projects comprising more than 2,100 units with a total asset value of greater than JPY70bn.
Kwek said: “Despite economic volatility over the past few years, our Japan residential portfolio has remained resilient, with stable rental growth and strong occupancy of above 95%.”
He said the investment aligned with the strategy of expanding in the global living sector to enhance its recurring income.
To read the latest edition of the latest IPE Real Assets magazine click here.
