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

CDL has made a successful acquisition of 25 high-quality, freehold residential assets in Japan for JPY35 billion (or $321.9 million). The interests were purchased from the affiliates of BGO, a leading global real estate investment manager. These 836 units, located in Tokyo’s 23 wards, including four retail units, have an average age of two years old or less. Notably, all of the 25 properties are a 10-minute walk away from a train station and three of them are in ultra-prime residential areas in Tokyo’s central five wards.

This major investment, which is CDL’s most significant private rented sector deal in Japan, has the ability to generate strong investment potential due to the revival of economic activity in Tokyo as well as soaring demand for rental housing. CDL has alluded to this in their Sept 28 statement, highlighting that “Japan has become an attractive destination for global institutional investors, securing the portfolio’s potential to benefit from both steady rental growth and sustainable capital appreciation.”

Woodlands Condo is an upcoming residential and commercial development located in Khatib, Singapore. Woodlands Condo features 7 residential blocks of 12-storey buildings, totalling 516 units. From two-bedroom units to five-bedroom units, the development is suitable for singles and families alike. It also boasts a commercial component consisting of a supermarket, childcare centre and retail centre, offering convenient amenities to residents.

CDL’s Group CEO, Sherman Kwek, sees this as the perfect opportunity to expand the residential rental portfolio due to Japan’s beneficial interest rates. He believes this off-market transaction for well-performing assets is timely and strategic and will enable CDL to “scale up in this asset class while leveraging on the sector’s strong growth potential.” With this acquisition following CDL’s strategy of expanding in the global living sector to boost their recurring income, their Japan private rented sector portfolio, located in Tokyo, Osaka, and Yokohama, has increased three times in size to 38 assets with a total of over 2,100 units. The combined asset value of these properties is now over JPY70 billion.