Japan Metropolitan Fund Investment Corporation (JMF), a Japanese Real Estate Investment Trust (REIT), is expanding its portfolio with the acquisition of Cross Residence Mishuku in Tokyo. This purchase marks JMF’s twelfth apartment acquisition in less than a year, demonstrating its commitment to expanding its residential portfolio.
Cross Residence Mishuku is one of four rental residential assets that JMF will acquire for JPY 9.5 billion ($64 million) from a subsidiary of Daiwa House. These properties are strategically located in Tokyo’s 23 major areas, known for their excellent transportation access and convenience.
The acquisition of these residential properties will contribute to the improvement of JMF’s portfolio quality and the progress of asset renovation, stated the fund manager in an investor statement.
The largest purchase among the four properties is Cosmos Gracia Kuramae Terrace, located in Tokyo’s Taito district, valued at JPY 3 billion. This building, which is nearing completion, consists of 60 residential units and is expected to be finished soon.
JMF is acquiring the property at a 9.1 percent discount from its appraised value, further enhancing the fund’s investment value. Its manager anticipates constant demand for housing in Taito due to population growth in this district, bucking the national demographic decline trend.
After this acquisition, JMF’s diverse portfolio will consist of a total of 137 assets across different sectors, including retail, office, residential, hotel, and mixed-use. The total acquisition price for these assets will reach JPY 1.2 trillion.
JMF’s expansion into the residential sector aligns with the growing interest in rental properties in the Asia-Pacific region. In 2023, the multi-family sector saw a 5 percent increase in transaction volumes, with investors trading rental housing properties worth $11.9 billion.
Under the management of KJR Management, following its acquisition by US investment management company KKR, JMF continues to pursue its growth strategy by consistently adding high-quality assets to its portfolio.
1. What is Cross Residence Mishuku?
Cross Residence Mishuku is a rental residential property located in Tokyo, Japan. It is one of four properties being acquired by Japan’s Metropolitan Fund Investment Corporation (JMF) for JPY 9.5 billion ($64 million) from a subsidiary of Daiwa House.
2. How many apartment purchases has JMF made in the past year?
JMF has made twelve apartment purchases in less than a year, showcasing its commitment to expansion in the residential sector.
3. Where are the properties that JMF is acquiring located?
The properties are strategically located in Tokyo’s 23 major areas, known for their excellent transportation access and convenience.
4. Are the properties being acquired at a discount?
Yes, JMF is acquiring the properties at a 9.1 percent discount from their appraised value, thereby increasing the fund’s investment value.
5. How many residential units are in Cosmos Gracia Kuramae Terrace?
Cosmos Gracia Kuramae Terrace, located in Tokyo’s Taito district, consists of 60 residential units.
6. Why is there consistent demand for housing in Taito?
Taito is experiencing consistent demand for housing due to its population growth, contrary to the national demographic decline trend.
7. How many assets will be in JMF’s portfolio after this acquisition?
After this acquisition, JMF’s portfolio will consist of a total of 137 assets across different sectors, including retail, office, residential, hotel, and mixed-use.
– Real Estate Investment Trust (REIT): A company that owns, operates, or finances real estate to generate income. It enables individuals to invest in real estate without directly buying, managing, or financing properties.
– Appraised value: The estimated value of a property determined by a professional appraiser.
– Rental housing properties: Properties that are rented to tenants for residential use.
Suggested Related Links:
– Japan Metropolitan Fund Investment Corporation website
– Daiwa House website
– KKR website