Lone Star Funds has acquired a multifamily residential portfolio containing 1,166 units in central Tokyo through an affiliate of Lone Star Real Estate Fund VII. Financial terms of the acquisition were not disclosed.
The portfolio is located in the Shinkawa and Tsukuda areas of Chuo Ward.
It consists of a 35-story residential tower containing 505 units and a separate campus of five buildings with 661 units. Four of the campus buildings are residential, while the fifth contains retail space serving nine tenants.
The properties are located along a waterfront residential area with access to central Tokyo business districts and nearby rail transportation.
Lone Star plans to implement a targeted capital expenditure program focused on amenities and property upgrades.
The firm expects the improvements to support tenant retention, attract new residents and increase net operating income.
Lone Star said it has previously executed similar value-add residential investments in Tokyo.
The acquisition reflects the firm’s continued confidence in Japan’s residential real estate fundamentals and demand for well-located rental properties in central Tokyo.
Since 1995, Lone Star has organized 26 private equity funds with approximately $96 billion in aggregate capital commitments.
KEY QUOTES:
“This transaction demonstrates our continued commitment to Japan, one of our most important investment markets.”
Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star Funds
“The portfolio comprises well-located assets in highly desirable neighborhoods. We will continue to invest in the properties to help capture the strong demand and growth in this market.”
Mitsuo Matsunaga, Executive Chairman for Japan at Lone Star Funds
