DALLAS & NEW YORK & LONDON & TOKYO, August 3 — Lone Star Funds (“Lone Star”) today announced that an affiliate of Lone Star Real Estate Fund VII, L.P has successfully completed the acquisition of a multi-family residential portfolio (a total of 1,166 units) in central Tokyo.
Located in the Shinkawa and Tsukuda submarkets of Chuo Ward in Central Tokyo, the portfolio consists of a 35-story, 505-unit residential tower and a separate campus of five buildings, four residential and one retail, totaling 661 units and nine retail tenants. The properties, which sit along a waterfront residential area, have excellent access to the key central business districts and are conveniently located within a brief walk from the closest train station.
Lone Star will invest in the properties through a targeted capital expenditure program to continue to drive appeal to existing tenants and attract new renters with amenity upgrades. Lone Star has executed similar value-add investments in Tokyo, successfully upgrading properties and increasing net operating income.
Jérôme Foulon, Global Head of Commercial Real Estate, Lone Star Funds stated: “This transaction demonstrates our continued commitment to Japan, one of our most important investment markets. We believe our local presence, long-standing relationships and extensive experience positions us well to identify and execute attractive opportunities such as this.”
Mitsuo Matsunaga, Executive Chairman, Japan, Lone Star Funds added: “This investment reflects our continued conviction in the fundamentals of Japan’s residential sector and the long-term attractiveness of central Tokyo. The portfolio comprises well-located assets in highly desirable neighborhoods. We will continue to invest in the properties to help capture the strong demand and growth in this market.”