CapitaLand Ascott Trust (CLAS) has announced the acquisition of three freehold rental housing properties in Southern Kanagawa, Greater Tokyo, Japan, for S$38.3m (JPY4.6b). The properties—Lime Residence Hiratsuka West, Lime Residence Hiratsuka East, and Live Casa Hiratsuka—were purchased from an unrelated third party and boast an average occupancy rate of over 95%, offering stable income with average lease terms of about two years.
The acquisition aligns with CLAS’s strategy to strengthen its presence in key markets and expand its living sector portfolio. Funded by JPY-denominated debt, the acquisition is expected to yield a blended net operating income entry yield of 4.1% and a 0.2% accretion 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.”
Strategically located along the Sagami Bay coastline, the properties are well-connected to major transport hubs, with easy access to Yokohama and central Tokyo. This prime location is expected to attract strong corporate demand from nearby industrial areas, appealing to working professionals seeking an idyllic coastal lifestyle.
Following this acquisition, living assets will constitute 17.5% of CLAS’s portfolio value, with a medium-term target of 25%-30% in the living sector. CLAS continues to optimise its portfolio in Japan, having recently divested Citadines Central Shinjuku Tokyo for S$222.7m (JPY25b), and plans to reinvest in higher-yielding properties.
