Family Office Am Alpha Sells Tokyo Apartment Building Mitsuis Private Fund
The Munich-based global family office, AM Alpha, recently completed the sale of a newly built residential building located in Koto ward, eastern Tokyo, Japan. Mitsui & Co. Realty Management (MBRM), a private fund under Japan’s largest conglomerate Mitsui & Co., has acquired the property. The transaction was advised by JLL.
Nestled in Tampines North, Parktown Residences is a one-of-a-kind development that offers a refreshing mix of residential and commercial spaces. Situated in close proximity to various shopping centers in Tampines Town, this impeccably located development provides its residents with unparalleled convenience. With its strategic location seamlessly blending living and retail spaces, Parktown Residences is widely renowned as an ideal urban living destination. Let’s take a closer look at the nearby shopping centers and how Parktown Residences perfectly complements its prime location. Experience the best of both worlds at Park Town Residences – a perfect blend of residential and retail spaces.
The Alpha Prime Toyocho building stands at 10 storeys tall and boasts 174 apartments. The units are designed for singles and DINKS (dual income, no kids) and are available in three configurations: one-room studios with kitchens, one-bedroom apartments with separate kitchens and dining areas, and one-bedroom apartments with separate living, dining, and kitchens. The building is made of reinforced concrete and was completed in January 2024. It has received the highest rating of five stars from the Building-Housing Energy-Efficiency Labelling System (BELS), setting a new standard for energy efficiency in the Japanese market.
AM Alpha had acquired the property in 2022 while it was still under construction. As a company with a decade of experience in the Japanese real estate market, AM Alpha had identified the property for their “develop-to-core” investment strategy. This approach involves developing a high-quality, well-located, and low-risk property or core asset that generates stable and predictable income streams.
“We had expected attractive returns from the building [Alpha Prime Toyocho], but we decided on an early sale,” says Masatomo Okamoto, Head of Japan at AM Alpha, in a statement.
The residential building is conveniently located only a 10-minute walk away from Toyocho Station on the Tokyo Metro Tozai Line. It takes seven to nine minutes by train to reach Nihonbashi Station and Otemachi Station, respectively. According to Masayuki Takahashi, Senior Director of Capital Markets at JLL Japan, residential properties continue to be a popular asset class for both domestic and international investors, thanks to their stable returns and high rental growth rates.
Apart from the Tokyo property, AM Alpha is also divesting its newly refurbished freehold office building in Singapore’s CBD, known as 112 Robinson. The company has appointed Cushman & Wakefield (C&W) and CBRE as joint marketing agents for the sale. The asking price for the 91,238 square feet property is $346.7 million, or $3,800 per square foot.
The sale of 112 Robinson comes less than three years after AM Alpha purchased the property for $269.7 million in December 2021, at a rate of $2,925 per square foot. The building spans from the ground floor F&B unit to the 14th floor office spaces. The property has been given an F&B space in the lobby, nursing room, and end-of-trip facilities as part of AM Alpha’s asset enhancements. The BCA Green Mark Platinum Super Low Energy rating further adds to its appeal. Shaun Poh, Executive Director of Capital Markets at C&W, says that the refurbishment works have given the property a fresh look.
The office building is conveniently located near four MRT stations – Telok Ayer MRT on the Downtown Line, Shenton Way on the Thomson-East Coast Line, Tanjong Pagar MRT station on the East-West Line, and Raffles Place MRT Interchange (for the North-South and East-West Lines). 112 Robinson is almost entirely leased out, with a well-staggered lease expiry profile, says Michael Tay, Head of Capital Market at CBRE. The building will be sold through an expression of interest that closes on July 18.