-- CapitaLand Ascott Trust (CLAS) has acquired three freehold rental housing properties in Southern Kanagawa, Greater Tokyo, Japan for a total consideration of JPY4.6 billion (S$38.3 million1) from an unrelated third party2. The three operating properties – Lime Residence Hiratsuka West, Lime Residence Hiratsuka East and Live Casa Hiratsuka – were built between two and four years ago. The properties have an average occupancy of over 95% and average lease terms of about two years, providing stable income.
On a FY 2025 pro forma basis, the acquisition has a blended net operating income entry yield of 4.1% and Distribution per Stapled Security (DPS) accretion of 0.2%. The acquisition was funded by JPY-denominated debt.
"The acquisition is in line with our strategy to strengthen CLAS’ presence in key markets while building a resilient portfolio anchored by stable and recurring income streams. It expands our living sector portfolio with prime rental housing, which is seeing high demand from the large and diverse working-age population in Greater Tokyo amid limited new supply. The three properties will benefit from strong corporate demand from nearby industrial areas and offer an idyllic coastal lifestyle that appeals to working professionals. We will continue to actively reconstitute and enhance our portfolio in Japan. We remain committed to delivering stable long-term returns to our Stapled Securityholders."
Ms Serena Teo, Chief Executive Officer of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the Managers of CLAS)
Following the acquisition, living assets will account for 17.5% of CLAS’ portfolio value. CLAS remains on track to achieve its medium-term portfolio allocation target of 25%-30% in the living sector and 70%-75% in hospitality assets.
Strategically located properties with strong demand
The properties are situated along the Sagami Bay coastline in the southern part of Kanagawa, Japan’s second most populous prefecture. Net migration into Kanagawa is largely driven by its active workforce, comprising young professionals and foreign workers attracted by the region’s expanding employment opportunities. Kanagawa also benefits from a diversified economy anchored by manufacturing, technology and logistics.
With the nearest train station a short walk away, the properties are well-connected to major transport hubs. They are a 30-minute train ride to Yokohama and a direct 60-minute train ride to central Tokyo. Major industrial corporations are accessible within a 20-minute train ride, while key retail and lifestyle amenities are a 10- to 20-minute drive away.
Lime Residence Hiratsuka West, comprising 115 units, was completed in 2023. Lime Residence Hiratsuka East, with 63 units, was completed in 2022, and Live Casa Hiratsuka, featuring 55 units, was completed in 2024.
For more information on the three properties, please refer to the Annex.
Enhancing CLAS’ portfolio in its key market of Japan
Following this latest acquisition, CLAS will have 35 properties in Japan, comprising a serviced residence, four hotels, 29 rental housing properties and a student accommodation property.
Over the years, CLAS has continued to optimise its portfolio in Japan. Through its active portfolio reconstitution strategy, CLAS has divested properties which have reached the optimal stage of their life cycles and reinvested the proceeds into higher-yielding, accretive acquisitions. These include the acquisitions of two hotels - ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae – in January 2025, as well as three rental housing properties –
Pre de Cort Nishikyogoku in Kyoto, and Pregio Esaka South and Splendide Namba West in Osaka – in August 2025.
In October 2025, CLAS divested Citadines Central Shinjuku Tokyo at JPY25 billion (S$222.7 million) at approximately 100% premium to the property’s book value. The divestment unlocked a net gain after tax of S$47.2 million. CLAS will be redeploying the capital into more effective uses such as repaying higher-interest debt, funding asset enhancement initiatives (AEIs), reinvesting in higher-yielding properties and/or for general corporate purposes.
Additionally, CLAS is renovating Sotetsu Grand Fresa Osaka-Namba to uplift the hotel’s value and profitability. The AEI is expected to be completed in 4Q 2026.
Lime Residence Hiratsuka West
Lime Residence Hiratsuka East
Live Casa Hiratsuka
Caption: CapitaLand Ascott Trust (CLAS) has acquired three freehold rental housing properties (pictured above) in Southern Kanagawa, Greater Tokyo, Japan for JPY4.6 billion (S$38.3 million) to strengthen its stable income streams. The accretive acquisition aligns with CLAS’ strategy to deepen its presence in key markets and expand its living sector portfolio.
Notes:
[1] Based on an exchange rate of JPY1 to S$0.008402 unless stated otherwise.
[2] Patience Capital Group.
