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

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CDL has taken a major stride in the global living sector, announced today in a statement, with the estimated purchase of interests in 25 high-quality freehold residential assets in Japan. This move is part of CDL’s private rented sector portfolio purchase, worth a total of JPY35 billion ($321.9 million) from affiliates of BGO, a leading global real estate investment manager.

The properties span 836 units, including four retail units, and are located within Tokyo’s 23 wards. Not to mention, three of the assets are situated in some of the city’s ultra-prime residential areas within the central five wards. All of the assets are situated within a 10-minute walk from a train station.

As Japan’s favourable interest rate environment has presented a timely opportunity for CDL, the group is now able to expand its residential rental portfolio through this rare off-market transaction for asset performance. Sherman Kwek, CDL’s group CEO expressed his delight. “This investment marks the group’s entry into Tokyo’s rental housing market, enabling us to further scale up in this asset class while leveraging on the sector’s strong growth potential.”

The potential of this venture is further highlighted with the recovery of economic activities and rising demand of rental accommodation in Tokyo.

CDL’s Japan private rented sector portfolio has increased following the completion of the transaction, located across Tokyo, Osaka and Yokohama. It has now tripled to 38 assets with a total value of over JPY70 billion and with strong occupancy of above 95%.

Kwek further commented upon this milestone, “This move is aligned with our strategy of expanding in the global living sector to enhance our recurring income.”

It is certain that CDL have made an investment of high potential with this venture, that comes with a great advantage of steady rental growth alongside sustainable capital appreciation in the current global uncertainty.