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 ($38.3 million) from Patience Capital Group, an unrelated third party.
The properties have an average occupancy of over 95% and average lease terms of about two years, announced CLAS on Feb 23.
The three operating properties were built between two and four years ago. Lime Residence Hiratsuka West, comprising 115 units, was completed in 2023. Lime Residence Hiratsuka East, with 63 units, was completed in 2022. Live Casa Hiratsuka, featuring 55 units, was completed in 2024.
Lime Residence Hiratsuka East
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Live Casa Hiratsuka
On a FY2025 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.
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.
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Following the acquisition, living assets will account for 17.5% of CLAS’ portfolio value. CLAS says it remains on track to achieve its medium-term portfolio allocation target of 25%-30% in the living sector and 70%-75% in hospitality assets.
Serena Teo, CEO of the managers of CLAS, says the acquisition expands the 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 properties are situated along the Sagami Bay coastline in the southern part of Kanagawa, Japan’s second-most populous prefecture.
According to CLAS, 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.
The properties 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, says CLAS.
“The three properties will benefit from strong corporate demand from nearby industrial areas and offer an idyllic coastal lifestyle that appeals to working professionals,” adds Teo. “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.”
In January 2025, CLAS acquired two hotels — ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae. In August 2025, it acquired three rental housing properties — Pre de Cort Nishikyogoku in Kyoto, and Pregio Esaka South and Splendide Namba West in Osaka.
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In October 2025, CLAS divested Citadines Central Shinjuku Tokyo at JPY25 billion at approximately 100% premium to the property’s book value. The divestment unlocked a net gain after tax of $47.2 million.
CLAS says it 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 4Q2026.
Photos: CLAS
