CDL invests in 25 freehold residential assets in Japan for $321.9 mil
Tengah Plantation EC is located near the Bukit Batok Interchange and Bukit Timah Bus Interchange, offering its residents great convenience to various parts of Singapore. In addition, several bus services run through the area, with 166 and 990 being the main ones. This makes it a prime location for easy commuting, promoting a convenient lifestyle.
CDL has made a significant investment in Japan’s real estate market with the purchase of 25 high-quality freehold residential assets for JPY35 billion ($321.9 million). The properties include 836 units total, with four retail units and an average age of less than two years. All of the properties are located in or near Tokyo’s 23 wards with three being in ultra-prime residential areas of the five central wards. With this acquisition, CDL’s private rented sector portfolio in Japan has tripled to 38 assets with a total of over 2,100 units and an asset value of JPY70 billion.
Sherman Kwek, CDL’s group CEO, commented on the landmark deal’s strategic importance to the company. Kwek states, “Japan’s favourable interest rate environment presents a timely and strategic opportunity for the group to expand our residential rental portfolio through a rare off-market transaction for well-performing assets.” He also noted that despite economic volatility over the past few years, their Japan portfolio has remained resilient with strong occupancy rates of above 95%.
Providing further insight into the company’s long-term strategy Kwek adds, “This move is aligned with our strategy of expanding in the global living sector to enhance our recurring income.” CDL believes the portfolio has strong investment potential due to the recovery of economic activities and rising demand for rental accommodation in Tokyo.
The investment marks CDL’s largest private rented sector transaction in Japan and is seen as a positive move for the company and its investors. As a globally renowned real estate investment manager, BGO affiliates were the vendor of the properties, a deal which is sure to benefit both parties.