City Developments Limited (CDL) plans to buy a 20 per cent stake in a 163-apartment development in the Aoyama area of Tokyo for an undisclosed amount, the company announced on Tuesday.
The exact price that CDL will pay to developer Mitsui Fudosan Residential Co has not been disclosed due to a confidentiality agreement, said CDL, a property developer.
But the project, called Park Court Aoyama The Tower, has a total gross development value of more than 50 billion yen (S$668 million).
The 26-storey tower has 93 parking lots, and facilities such as a swimming pool, gym, sky lounge and private garden.
Apartment sizes range from 389 to 3,789 square feet.
Showflat previews have begun, and prices for the initial 55 units range from 178.8 million yen for a one-bedroom unit to 271 million yen for a three-bedroom unit.
"This investment is in line with CDL's diversification strategy to accelerate our overseas expansion," CDL deputy chief executive officer Sherman Kwek said in a statement.
"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 in the central five wards.
In land-scarce Tokyo, this is a rare opportunity to participate in a prime freehold residential development."
The CDL Group, including Millennium & Copthorne Hotels and CDL Hospitality Trusts, has invested over 50 billion yen in Tokyo to date.
This comprises investments in two residential developments and three hotels.
Also on Tuesday, CDL said that fund manager Aberdeen Asset Management had trimmed its stake in CDL to 14 per cent from 14.8 per cent after an Aberdeen fund withdrew 7 million shares in line with client requests.
CDL closed one Singapore cent or 0.11 per cent lower, at S$8.77 per share on Tuesday.
This article was first published on Oct 19, 2016.
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