As one of its overseas expansion push, City Developments (CDL) has entered into the land of the rising sun, with the acquisition of a 20 per cent stake in a residential project in one of Tokyo’s poshest areas. The move is in line with CDL’s diversification strategy to accelerate its overseas expansion.
CDL bought the stake from Mitsui Fudosan Residential for a confidential sum. The 163-unit project, Park Court Aoyama The Tower, has a total gross development value of more than 50 billion yen (S$666 million).
Apparently the Japan’s real estate sector, in particular within Tokyo, is experiencing a strong boom in its residential market, with robust demand for well-located condominiums.
The project is in the Aoyama area within Minato ward – the centre of business activity, and home to the offices of many multinational corporations and foreign embassies.Park Court Aoyama The Tower, a 26-storey freehold development, is targeted at high-end domestic and foreign buyers.
Apartment sizes range from 389 sq ft to 3,789 sq ft, and an initial 55 units will be launched for sale. Prices will start from 178.8 million yen for a one-bedroom unit, 199.4 million yen for a two-bedder and 271 million yen for a three-bedroom unit.
CDL’s first partnership with its Japanese partner was in 2011 when it bought a prime site in Ginza for its flagship hotel in Japan. The site was developed into a 329-room hotel that is managed by Mitsui Fudosan Group. Park Court Aoyama The Tower is the second collaboration between CDL and Mitsui Fudosan Group in Japan.
To date, CDL (including Millennium & Copthorne Hotels, and CDL Hospitality Trusts) has poured in more than 50 billion yen in 2 residential developments and 3 hotels in Tokyo.