Warburg Pincus has acquired the Tokyo Beta portfolio, the largest share house portfolio in Japan, for an undisclosed price.

The Warburg Pincus Asia Real Estate Fund has acquired the portfolio of 1,195 wooden detached houses with a total of 16,192 rooms.

The portfolio represents more than 50% of the share house market in Tokyo.

Takashi Murata, managing director, co-head of Asia real estate and head of Japan at Warburg Pincus, said: “In the coming decade, the population in Tokyo is projected to continue to grow, driven by the influx of domestic and international young workforce and students, creating significant demand for affordable rental accommodation options.

“Limited housing supply has been pushing residential rental rates up by 5% per annum over the last three years, while occupancy rates are at a record high of over 97%, highlighting the structural demand and supply gaps in Tokyo.”

The portfolio of assets will continue to operate under the Tokyo Beta brand and be managed by Tosei Asset Advisors, a real estate asset manager in Japan.

Seiichiro Yamaguchi, CEO of Tosei Group, said: “We are pleased to partner with Warburg Pincus on its inaugural rental housing investment in Japan. Tosei Asset Advisors has built a strong track record of managing real estate funds with over JPY2.4trn (€14.8bn)  in assets under management across a diverse range of assets, serving both domestic and international.”

An earlier version of this article incorrectly stated the acquisition involved 6,192 rooms. The correct figure is 16,192 rooms.  

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