CapitaLand Ascott Trust (CLAS) has announced the acquisition of three rental housing properties in Southern Kanagawa, Greater Tokyo, Japan, for JPY4.6 billion (S$38.3 million). This strategic move aims to bolster CLAS's presence in key markets and expand its living sector portfolio. The properties, Lime Residence Hiratsuka West, Lime Residence Hiratsuka East, and Live Casa Hiratsuka, boast an average occupancy rate of over 95% and offer stable income with average lease terms of about two years.
The acquisition, funded by JPY-denominated debt, is expected to yield a 4.1% net operating income entry yield and a 0.2% increase in Distribution per Stapled Security (DPS) on a FY 2025 pro forma basis. Serena Teo, CEO of CapitaLand Ascott Trust Management Limited, stated, "The acquisition is in line with our strategy to strengthen CLAS’ presence in key markets whilst building a resilient portfolio anchored by stable and recurring income streams."
Situated along the Sagami Bay coastline, the properties are strategically located with excellent transport links, including a 30-minute train ride to Yokohama and a 60-minute direct train to central Tokyo. This location is attractive to young professionals and foreign workers due to the region's expanding employment opportunities and diversified economy.
Following this acquisition, living assets will account for 17.5% of CLAS's portfolio value. The trust remains on track to achieve its medium-term target of allocating 25%-30% of its portfolio to the living sector. CLAS continues to optimise its portfolio in Japan, having recently divested Citadines Central Shinjuku Tokyo and reinvested in higher-yielding properties
This story was selected and published by a human editor, with content adapted from original press material using AI tools. Spot an error? Report it here.
