Singapore’s CDL to invest in luxury Tokyo condo
Singapore’s CDL to invest in luxury Tokyo condo
Taking a slice of land-scarce Japan
Singaporean property behemoth City Developments (CDL) revealed Tuesday plans to buy a 20 percent stake in a 163-unit condominium project in Tokyo.
The project, being developed by Mitsui Fudosan Residential, which partnered with City Developments before for its Singaporean projects, has a total development value of JPY50 billion (USD482 million). Called Park Court Aoyama The Tower, the condominium building will rise 26 storeys above Tokyo’s trendy Aoyama area upon its completion in 2018.
The project is located in Minato ward, a populous business district in the Japanese capital.
“This investment is in line with CDL’s diversification strategy to accelerate our overseas expansion,” City Developments’ deputy CEO Sherman Kwek said in a news release. “Japan’s real estate sector, in particular within Tokyo, is experiencing a strong boom in its residential market with robust demand for well-located condominiums in the central five wards. In land-scarce Tokyo, this is a rare opportunity to participate in a prime freehold residential development.”
Prime rents in Tokyo are growing the fastest in Asia, with a 9 percent year-on-year growth in the second quarter, Knight Frank recently revealed in its Prime Global Rental Index.
City Developments’ other investments in Tokyo include two housing projects and three hotels valued at JPY50 billion. These include Millennium Mitsui Garden Hotel Tokyo, a joint venture between Mitsui Fudosan and City Developments’ parent company Hong Leong Group, and a luxury residential development on the 16,800-square-metre plot that once belonged to Seiko founder Kintarō Hattori.
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Source: Property Report