SINGAPORE – CapitaLand Investment (CLI) has entered into a forward purchase agreement to acquire six multi-family assets in Osaka, Japan, at a purchase price of $141.4 million for its regional core-plus fund, CapitaLand Open End Real Estate Fund (Coref).
The real estate investment manager said on Monday that the deal marks Coref’s entry into the multi-family sector.
The six assets comprise 428 premium one-bedroom apartments located close to the commercial districts of Umeda and Namba, and are within walking distance to the nearest respective subway stations.
The properties will be completed in phases from May 2023 to June 2024 and are set to benefit from Osaka’s growth potential; it is in contention for Japan’s first integrated resort, which is projected to open by 2030.
The city is also undergoing revitalisation as it prepares for World Expo 2025.
CLI noted that these developments will boost demand for rental properties, as they “will increase the city’s attractiveness and the size of its working population”.
Mr Tan Lai Seng, CLI’s managing director for Japan, said that to date, the group has deployed about $1.1 billion in Japan across 60 properties through its various investment vehicles while successfully recycling investors’ capital.
In Japan, CLI’s wholly owned lodging business unit, The Ascott Limited, and its lodging trust, CapitaLand Ascott Trust, have a portfolio of over 8,200 units across more than 50 assets in nine cities.
“The multi-family sector in key Japanese cities, in particular Osaka and Tokyo, has demonstrated resilience over the past decade, driven by robust demand supported by urban migration to the cities,” he added.
Coref has sought to achieve “geographical diversification” since its inception by investing selectively in Japan, Singapore and Australia, said Mr Simon Treacy, CLI’s chief executive for private equity real estate and real assets.
The company acquired a freehold office tower in Melbourne in 2022 for Coref.
“We remain focused on seeking attractive opportunities to deliver quality returns to our fund investors as we grow the business,” added Mr Treacy.
Shares of CLI closed up seven cents, or 1.9 per cent, at $3.75 on Monday.
