Japan offers a liquid real estate environment with steady income, tax efficiency, and strong long-term appreciation potential for both the real estate and currency.
Stable and Defensive
Stable and Defensive
Steady demand for rental properties due to urban migration and the trend towards smaller household sizesÂ
Tokyo’s role as a financial and political centre contributes to its economic dynamism, ensuring salaries can keep pace with the rise in rental costsÂ
Diversified risk across multiple tenants minimising impact of default on overall income as compared to single-tenant commercial properties.
Favourable Risk-Adjusted Yield
Favourable Risk-Adjusted Yield
Attractive low interest rate environment with Japan’s accommodative monetary policy which keeps rates significantly lower than in other major economies
Enhanced returns through positive accretive financing and availability of non-recourse debt
Underpinned by stable demand-supply dynamics that are further bolstered by the flexibility of short lease terms that enhances the sector's resilience during economic downturns
Deep Institutional Real Estate Market
Deep Institutional Real Estate Market
One of the most liquid capital markets in the world that contributes to its depth - offering a wide variety of investment opportunities across different asset classes
Mature financial infrastructure, clear property rights and stringent regulations provides a sophisticated investment environment for institutional investorsÂ
Favourable Macro Environment
Favourable Macro Environment
Predictable inflation rates promotes predictability in borrowing costs, income streams and steady growth in property value Â
Favourable exchange rates especially for foreign investors benefitting from a relatively weak yenÂ
Tokyo's migration patterns have rebounded to pre-pandemic levels, driven by education and employment opportunities
Strong Micro Factors
Strong Micro Factors
Japan’s aging population and increasing single-person households drive demand for compact, well-located rental units
Rising cost of home ownership and a preference for flexibility contributes to high demand for rental housing
Tokyo's constrained rental housing supply, driven by aging infrastructure and rising construction costs, sustains strong rental income due to persistent demand for modern, well-located properties.
Our Selected Portfolio - Tokyo
We are managing 184 residential apartment units across 7 blocks in Tokyo’s greater 23 wards.
Higashi Koenji
Omori Le Note
Heiwajima East & West
Delux Ryogoku
Grand Park Machiya
Sumiyoshi
Case Studies
Prime Shibuya Commercial Building
Key Challenges:
Unable to secure non-recourse loans
Complicated legacy structures that limit loan options and result in tax inefficiencies
Tight Deal Completion timeline over Christmas and New Year
Achievement:
Restructure existing legacy elements to enable non-recourse financing, optimise for tax efficiency and structured for ease of onshore as well as offshore disposal
Secured extremely favourable non-recourse financing offer terms from 11 local regional banks after restructuring the asset  Â
Stabilise income and increase asset quality, significantly improving IRR and Cash on Cash returns while improving valuation of the property.
30%
Increased valuation above purchase price *
> 40%
Tax savings via restructuring *
> 65%
Loan to purchase price *
*indicative
Prime Tokyo Residential Portfolio
Key Challenges:
Significant vacancy rate
Unable to secure any kind of financing
Legacy structure not optimised for tax and disposal
Inefficient structure leading to international investors inadvertently becoming a tax resident of Japan, subjecting them to Japanese tax on all their global income.
Strategic Solution & Execution
Restructure existing legacy elements in stages to enable non-recourse financing, optimise for tax efficiency and structured for ease of onshore as well as offshore disposal
Reposition assets into optimised tax vehicles to remove investor tax resident status.
Stabilise income and increase asset quality, significantly improving IRR and Cash on Cash returns while improving valuation of the property.
3X
Amplified returns on an IRR basis *
2X
Increase in annual income *
30%
Tax savings via restructuring *
*indicative
Japan Hospitality
Acquisition & Development Advisory
Key Pain Points & Challenges Faced
Lack of an asset manager with development expertise
Market Screening: Identifying attractive properties aligned with agreed investment guidelines.
Integrated Advisory: Providing comprehensive investment and development advisory services.
Strategic partnership: Sourced and facilitated a partnership with a  reputable developer possessing asset management capabilities in both residential and hospitality.
Improves risk mitigation and enhanced service quality with in-house expertise in design, construction and engineering
Development Project Management: Managing the entire development process from pre-construction (feasibility studies, design, entitlements) to construction and ongoing asset management.
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