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Straits Real Estate makes maiden entry into Japan residential market
THE Straits Trading Company's subsidiary, Straits Real Estate, has entered into a conditional purchase and sale agreement with Osaka-based developer Chinju Co to acquire three residential buildings located in Central Osaka for 6.2 billion yen (S$76.8 million).
Completion of the acquisition is expected to take place by end-June.
"The acquisition will complement Straits Real Estate's existing investments in the Asia Pacific and is in line with its strategy of tapping into higher returning real estate investment opportunities," said Straits Trading.
The properties - Luxe Taisho, Luxe Shin Osaka and Luxe Dome Mae - are freehold residential rental properties respectively located at Taisho-ku, Yodogawa-ku and Nishi-ku in Central Osaka.
They comprise a total of 396 apartment units with an average unit size of 27 square metres.
Potential tenants include mid-level professionals and young households.
Desmond Tang, CEO of Straits Real Estate, said: "We are very pleased to make our maiden entry into the Japan residential market with this acquisition, and will look to add similar assets in Tokyo and Osaka to the portfolio. The strategy takes advantage of continuing urbanisation led by young workers and professionals. We expect this urbanisation trend to continue in the foreseeable future, sustaining demand for good quality affordable rental housing at convenient city centre locations."
The properties are close to full occupancy and are already income-generating.