• Thu. Feb 22nd, 2024

    JMF Continues Expansion with Tokyo Apartment Acquisition

    BySharna Bass

    Feb 8, 2024
    JMF Continues Expansion with Tokyo Apartment Acquisition

    Japanese real estate investment trust Japan’s Metropolitan Fund Investment Corporation (JMF) is set to add another property to its growing portfolio with the acquisition of the Cross Residence Mishuku in Tokyo. This marks JMF’s twelfth apartment purchase in less than a year, reaffirming its commitment to expanding its residential holdings.

    The 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. The properties are strategically located in Tokyo’s 23 wards, known for their excellent transportation links and convenience.

    “The acquisition of these residential properties will contribute to the improvement of the quality of JMF’s portfolio and the progress of asset replacement,” stated the trust’s manager in an investor disclosure.

    Among the four properties, the largest purchase is the Cosmos Gracia Kuramae Terrace in Tokyo’s Taito ward, valued at JPY 3 billion. The nearly-completed building consists of 60 residential units and is expected to be completed soon.

    JMF is acquiring the property at a 9.1 percent discount from its appraised value, further enhancing the trust’s investment value. Its manager anticipates steady housing demand in Taito due to the ward’s growing population, defying the national trend of population decline.

    After the completion of this acquisition, JMF’s diverse portfolio will consist of a total of 137 assets across various sectors, including retail, office, residential, hotel, and mixed-use. The total acquisition price for these assets will amount to JPY 1.2 trillion.

    JMF’s expansion into the residential sector aligns with the increasing interest in rental properties in the Asia Pacific region. In 2023, the multi-family sector recorded a 5 percent increase in transaction volumes, with investors trading $11.9 billion worth of rental housing properties.

    Under the management of KJR Management, following its acquisition by US-based investment management firm KKR, JMF continues to pursue its growth strategy, consistently adding high-quality assets to its portfolio.

    FAQ Section:

    1. What is the Cross Residence Mishuku?
    The Cross Residence Mishuku is a rental residential property located in Tokyo, Japan. It is one of four properties that Japan’s Metropolitan Fund Investment Corporation (JMF) is acquiring 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 expanding its residential holdings.

    3. Where are the properties being acquired by JMF located?
    The properties are strategically located in Tokyo’s 23 wards, known for their excellent transportation links 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, enhancing the trust’s investment value.

    5. How many residential units are there in the Cosmos Gracia Kuramae Terrace?
    The Cosmos Gracia Kuramae Terrace, located in Tokyo’s Taito ward, consists of 60 residential units.

    6. Why is there steady housing demand in Taito?
    Taito is experiencing steady housing demand due to its growing population, contrary to the national trend of population decline.

    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 various sectors, including retail, office, residential, hotel, and mixed-use.

    Definitions:

    – Real estate investment trust (REIT): A company that owns, operates, or finances income-generating real estate. It allows individuals to invest in real estate without needing to directly buy, manage, or finance properties themselves.
    – Appraised value: The estimated worth of a property determined by a professional appraiser.
    – Rental housing properties: Properties that are rented out to tenants for residential purposes.

    Related Links:

    JMF Official Website
    Daiwa House Official Website
    KKR Official Website