CapitaLand Investment to buy six multifamily assets in Japan

The transaction was valued at S$141.4m. 

CapitaLand Investment Limited (CLI) will be acquiring six multifamily assets in Osaka, Japan for a purchase price of S$141.4m, approximately US$105.9m. 

This forms part of CLI’s flagship regional core-plus fund CapitaLand Open End Real Estate Fund (COREF). The purchase agreement also markets COREF’s entry into the multifamily sector. 

“As part of our thematic strategy to invest in the multifamily sector, the Group has to date deployed about S$1.1 billion in Japan across 60 properties through its various investment vehicles, whilst successfully recycling investors’ capital,” Tan Lai Seng, Managing Director for Japan, CLI, said.

Read more: CapitaLand Investment removed from Low Carbon Select 50 Capped Index

The six properties, including three more multifamily properties acquired through CapitaLand Ascott Trust bring the total CLI vehicles to 30 multifamily properties across eight cities in Japan.

“The multifamily sector in key Japanese cities, in particular Osaka and Tokyo, have demonstrated resilience over the past decade, driven by robust demand supported by urban migration to the cities. The Osaka multifamily sector performed well even during the COVID-19 pandemic, demonstrated by growth in rents and strong occupancy rates of above 95%,” he said.