CDL invests in 25 freehold properties in Japan worth $321.9m

The properties have over 836 units, with four retail units.

City Developments Limited (CDL) revealed that it invested in 25 high-quality freehold assets in Japan, which are worth $321.9m (JPY35b).

The properties are composed of 836 units, which include four retail units. This also marks CDL’s largest transaction in Japan.

“The interests in the properties were purchased from affiliates of BGO, a leading global real estate investment manager,” read the statement.

The portfolio of properties in Tokyo is located within a 10-minute walk from a train station. Three of the assets are in ultra-prime residential areas within Tokyo’s central five wards.
 
The portfolio enjoys an average committed occupancy rate of around 97% and stable rental income.

With its enlarged PRS portfolio in Japan, CDL is anticipated to “benefit from a recovering economy, rising wages and a post-pandemic resurgence in net migration into Tokyo, all of which
are fuelling demand for rental accommodation.” 

Tokyo, Osaka and Yokohama have tripled to 38 assets totalling more than 2,100 units and with an asset value of greater than JPY 70 billion (over $644 million).

$1 = JPY109.49