CapitaLand Ascott Trust expands Japan portfolio with 4.6 billion yen acquisition
It acquires three freehold rental housing properties in Southern Kanagawa, Greater Tokyo
[SINGAPORE] CapitaLand Ascott Trust (Clas) on Monday (Feb 23) announced the acquisition of three freehold rental housing properties in Southern Kanagawa, Greater Tokyo, for 4.6 billion yen (S$38.3 million) from an unrelated third party, Patience Capital Group.
The three newly acquired operating properties – Lime Residence Hiratsuka West, Lime Residence Hiratsuka East, and Live Casa Hiratsuka – were built between two and four years ago.
The properties have an average occupancy of over 95 per cent and average lease terms of about two years, providing stable income, Clas said.
They have a blended net operating income entry yield of 4.1 per cent (on a FY 2025 pro forma basis) and an expected 0.2 per cent distribution per stapled security accretion.
The acquisition was fully funded by Japanese yen-denominated debt.
Serena Teo, CEO of Clas’ managers, said: “The acquisition is in line with our strategy to strengthen Clas’ presence in key markets while building a resilient portfolio anchored in stable and recurring income streams.”
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“It expands our living sector portfolio with prime rental housing, which is seeing high demand from the large and diverse working-age population in Greater Tokyo amid limited new supply,” she added.
Located along the Sagami Bay coastline in the southern part of Kanagawa, the assets are positioned to serve the working-age population and foreign workers in Kanagawa, benefiting from proximity to industrial areas and transport links that provide a 60-minute commute to central Tokyo.
Following this deal, living sector assets comprise 17.5 per cent of the Clas portfolio value.
This move is part of a broader strategy to reach a medium-term target of 25 to 30 per cent allocation in the living sector.
The trust now holds 35 properties in Japan, having recently expanded its footprint through the 2025 acquisitions of hotels in Tokyo and Kanazawa, as well as rental housing in Kyoto and Osaka.
Units of Clas ended S$0.015 or 1.5 per cent higher at S$0.985 on Friday.
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