CapitaLand Investment to acquire six multifamily assets in Japan for its regional private fund

SINGAPORE - April 3, 2023 - PRLog -- CapitaLand Investment Limited (CLI) has entered into a forward purchase agreement with an established Osaka-based residential developer to acquire six multifamily assets in Central Osaka, Japan at a purchase price of S$141.4 million (US$105.9 million) for its flagship regional core-plus fund, CapitaLand Open End Real Estate Fund (COREF).  The deal marks COREF's entry into the multifamily sector.

Mr Tan Lai Seng, Managing Director for Japan, CLI, said: "CLI has over 20 years of experience in Japan, and we are pleased to source and execute this off-market deal for COREF in Japan's sought-after multifamily sector that has seen increasing interest from international investors.   As part of our thematic strategy to invest in the multifamily sector, the Group has to date deployed about S$1.1 billion in Japan across 60 properties through its various investment vehicles, whilst successfully recycling investors' capital.  Including the six newly acquired multifamily properties by COREF and another three multifamily properties acquired by CLI's lodging trust CapitaLand Ascott Trust which will be completed between 2Q 2023 and 2024, CLI vehicles will hold a total of 30 multifamily properties across eight cities in Japan.  The multifamily sector in key Japanese cities, in particular Osaka and Tokyo, have demonstrated resilience over the past decade, driven by robust demand supported by urban migration to the cities.  The Osaka multifamily sector performed well even during the COVID-19 pandemic, demonstrated by growth in rents and strong occupancy rates of above 95%."

Mr Simon Treacy, CEO, Private Equity Real Estate, Real Assets, CLI, said: "We continue to build on our private fund management's achievements with the acquisition of a high-quality portfolio of multifamily assets in Osaka for COREF.  Japan's urban multifamily sector is one of the bright spots in the Asia Pacific real estate market that has been growing steadily and demonstrated resilience through economic cycles.  Since its inception in September 2021, COREF has invested selectively in Japan, Singapore and Australia to achieve geographical diversification.  Since 2022, CLI has launched 11 new private vehicles and added 17 new investors to our global network of capital partners amidst volatile market conditions, bringing equity raised to date to over S$4 billion.  Building on this momentum, we will continue to leverage our ground expertise and deep experience in the countries we operate in.  We remain focused on seeking attractive opportunities to deliver quality returns to our fund investors as we grow the business."

For full release: https://bit.ly/COREF_multifamily