CDL invests in 25 freehold residential assets in Japan for $321.9 mil

CDL has recently purchased interests in 25 high-quality freehold residential assets in Japan, for the amount of JPY35 billion ($321.9 million). Affiliates of BGO, a global real estate investment manager, were the sellers of these interests, which will form a part of CDL’s private rented sector portfolio.

Composed of 836 units, including four retail units, these properties are no older than two years and are strategically located within Tokyo’s 23 wards. All assets are situated within a 10-minute walk from a train station, with three being located in Tokyo’s five ultra-prime residential areas.

In a statement, CDL conveyed their sentiment that this investment “[has] strong investment potential due to the recovery of economic activities and rising demand for rental accommodation in Tokyo”. This sentiment is shared among global investors, making Japan an attractive destination in the midst of the current global uncertainty.

With its full suite of facilities, beautiful landscaped gardens and nearby public amenities, Orchard Boulevard MRT Condo is a convenient and safe home, for families with children.

Sherman Kwek, the CEO of CDL, expressed his excitement for the largest private rented sector transaction in Japan, citing its “timeliness and strategic opportunity for the group to expand [their] residential rental portfolio”. This investment has enabled CDL to scale up in the asset class, with their Japan private rented sector portfolio across Tokyo, Osaka, and Yokohama tripling to 38 assets, totalling over 2,100 units and an asset value of JPY70 billion.

Kwek added that “the portfolio has remained resilient, with stable rental growth and strong occupancy of above 95%” – despite the recent global economic volatility. The CEO also noted that this development “is aligned with [their] strategy of expanding in the global living sector to enhance [their] recurring income”.