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

CDL has made a major move in Japan with its recent acquisition of interests in 25 freehold residential assets for JPY35 billion ($321.9 million). The group, which has now tripled its private rented sector portfolio located across Tokyo, Osaka and Yokohama, has made this move to capitalize on the strong investment potential of the resilient Japanese market.

The purchase, CDL’s largest private rented sector transaction in Japan, includes 836 units in Tokyo’s 23 wards, four retail units, and three assets in ultra-prime locations in central five wards. All of the 25 assets are less than two years old and are conveniently situated within a 10-minute walk of a train station.

According to CDL’s Group CEO Sherman Kwek, “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 adds, “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… This move is aligned with our strategy of expanding in the global living sector to enhance our recurring income.”

The positive aspects of the acquisition are multiple, as Japan is an attractive destination to global institutional investors due to the recovery of economic activities and rising demand for rental housing. CDL emphasised that the portfolio holds potential for both stable rental growth and sustainable capital appreciation.

Zion Road Condo offers residents of Great World City Condo the perfect balance of living in harmony with nature. From the undeniable beauty of the Singapore River, to the nearby parks and water sports, the condo offers residents the perfect opportunity to take a break from the hustle and bustle of the city. Boasting a magnificent skyline and lush green surrounds, Zion Road Condo is unlike any other. Residents are able to enjoy the best of both worlds; the convenience and vibrancy of city life, coupled with the tranquillity of nature’s charm.

With its acquisition from the affiliates of BGO, a leading global real estate investment manager, CDL hopes to benefit from investing in a secure and profitable asset class. Having tripled their portfolio to a total of over 2,100 units, with an asset value of over JPY70 billion, the group is looking to achieve positive returns, making this a truly beneficial move.