CDL invests in Tokyo residential rental portfolio, marks its largest private rented sector transaction in Japan

City Developments Limited (CDL) has enlarged its private rented sector (PRS) portfolio in Japan by investing in 25 high-quality freehold residential assets for JPY 35 billion ($235.3 million).

These properties comprise a total of 836 units (including four retail units) and mark CDL’s largest PRS transaction in Japan. The interests in the properties were purchased from affiliates of BentallGreenOak.

With an average age of less than two years, the portfolio of 25 assets in Tokyo’s 23 wards is conveniently located within a 10-minute walk from a train station. Three of the assets are in ultra-prime residential areas within Tokyo’s central 5 wards. Given their strong locational attributes, the portfolio enjoys an average committed occupancy rate of around 97 percent and stable rental income.

CDL has been strategically expanding its foothold in Japan’s PRS market. This investment marks the group’s first foray into Tokyo’s rental housing sector, following i