CDL to buy 20% stake in 163-unit Tokyo residence

CITY Developments (CDL) plans to buy a 20 per cent stake in a 163-apartment residential development in the Aoyama area of Tokyo for an undisclosed amount.

The exact price that CDL will pay to developer Mitsui Fudosan Residential Co has not been disclosed due to a confidentiality agreement, said CDL, a property developer. But the project, called Park Court Aoyama The Tower, has a total gross development value of more than 50 billion yen (S$666 million).

The 26-storey tower has 93 parking lots, and facilities such as a swimming pool, gym, sky lounge and private garden. Apartment sizes range from 389 to 3,789 square feet. Show flat previews have begun, and prices for the initial 55 units range from 178.8 million yen for a one-bedroom unit to 271 million yen for a three-bedroom unit.

"This investment is in line with CDL's diversification strategy to accelerate our overseas expansion," CDL deputy chief executive Sherman Kwek said in a statement. "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."