City Developments (CDL) has stepped up its overseas expansion push with the acquisition of a 20 per cent stake in a residential project in one of Tokyo's poshest areas.
The Singapore-listed developer said it had bought the stake from Mitsui Fudosan Residential for a sum that could not be disclosed owing to a confidentiality agreement.
The 163-unit project, Park Court Aoyama The Tower, has a total gross development value of more than 50 billion yen (S$666 million).
CDL said the deal was done through its established special-purpose company, Iconique Tokutei Mokuteki Kaisha.
The move is in line with CDL's diversification strategy to accelerate its overseas expansion.
"Japan's real estate sector, in particular within Tokyo, is experiencing a strong boom in its residential market, with robust demand for well-located condominiums in the central five wards," said CDL deputy chief executive Sherman Kwek.
The project is in the Aoyama area within Minato ward - the centre of business activity, and home to the offices of many multinational corporations and foreign embassies.
Park Court Aoyama The Tower, a 26-storey freehold development, is targeted at "high-end domestic and foreign buyers", CDL said.
Apartment sizes range from 389 sq ft to 3,789 sq ft, and an initial 55 units will be launched for sale.
Previews of the show-flat - available only in Japan - have begun. Prices will start from 178.8 million yen for a one-bedroom unit, 199.4 million yen for a two-bedder and 271 million yen for a three-bedroom unit.
Park Court Aoyama The Tower is the second collaboration between CDL and Mitsui Fudosan Group in Japan. The first was in 2011 when CDL's hospitality unit, Millennium and Copthorne Hotels, bought a prime site in Ginza for its flagship hotel in Japan. The site was developed into a 329-room hotel that is managed by Mitsui Fudosan Group.
To date, CDL - including Millennium & Copthorne Hotels, and CDL Hospitality Trusts - has invested more than 50 billion yen in two residential developments and three hotels in Tokyo.
"CDL will continue to source for attractive opportunities in Japan, and endeavour to further broaden its residential, office and hospitality presence there," it said.
