TE Capital Partners, Hillhouse-backed Dash Living acquire prime Tokyo housing asset

[SINGAPORE] TE Capital Partners has tied up with Hillhouse-backed flexible living operator Dash Living to acquire a freehold residential asset in Tokyo.

The property, located in the upscale Aoyama district, sits on a 30,000 square foot (sq ft) site and comprises 102 residential units, five retail units and 81 parking spaces, the companies said on Thursday (May 28).

TE Capital will hold a supermajority stake in the joint venture, while Dash Living will retain a minority interest and manage the property, which will be rebranded as Dash Living Aoyama following refurbishment works.

The acquisition price was not disclosed.

The seven-storey asset is close to Nogizaka and Omotesando stations, providing connectivity to lifestyle precincts including Shibuya, Shinjuku and Ginza, as well as Tokyo’s central business district Otemachi.

As part of the asset enhancement programme, the residential units will be repositioned into furnished and unfurnished offerings with flexible lease terms targeted at senior corporate executives, ultra-high-net-worth individuals and expatriate families. The units have an average size of more than 800 sq ft.

“This asset is located in one of Tokyo’s most tightly held and supply constrained residential submarkets, where Minato Ward combines strong demand fundamentals with sustainable rental affordability,” said Stanley Shen, executive director of TE Capital.

The purchase comes amid continued investor interest in Tokyo’s residential market, particularly in prime central wards where rental growth has remained resilient amid limited supply of large-format housing stock.

According to JLL, Minato Ward recorded the lowest rent-to-income ratio among Tokyo’s 23 wards at about 15 per cent, supporting further rental growth potential.

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“Japan’s national rent-to-income ratio of about 19 per cent remains structurally lower than comparable G7 economies, reinforcing the runway for continued rent reversion,” said TE Capital and Dash Living.

They added that family oriented units of 50 to 70 square metres (sq m) in Tokyo’s 23 wards recorded year-on-year rental growth of about 10 per cent, while larger-format units above 70 sq m posted rental growth of about 7.8 per cent across the wider Tokyo metropolitan area.

TE Capital has invested in over 100 billion yen of assets in Japan so far. In 2025, the private equity firm and Dash Living acquired a 130-unit residential property in Minami Azabu. Earlier, TE Capital and Tokyo Trust Capital acquired a 12-storey office building in Tokyo’s Chuo ward.

In 2022, the Singapore-based investment manager acquired 16 Tokyo rental residential properties for about US$100 million, after buying a US$50 million portfolio of Tokyo apartment assets in 2020.