CapitaLand Ascott Trust (CLAS) has completed the acquisition of three freehold rental housing properties in Greater Tokyo for JPY4.6 billion. The deal involves Lime Residence Hiratsuka West, Lime Residence Hiratsuka East and Live Casa Hiratsuka. Located in Southern Kanagawa, the buildings were constructed within the last four years and currently maintain an average occupancy rate exceeding 95 per cent.

The properties provide stable income with average lease terms of approximately two years. This acquisition was funded through debt denominated in Japanese Yen. On a pro forma basis for 2025, the transaction shows a blended net operating income entry yield of 4.1 per cent and a distribution per stapled security accretion of 0.2 per cent.

Following this purchase, living assets now represent 17.5 per cent of the total portfolio value for CLAS. The trust is working towards a medium-term goal of having 25 per cent to 30 per cent of its assets in the living sector. The properties are situated in Japan’s second most populous prefecture and benefit from strong transport links to Yokohama and central Tokyo. Major industrial hubs are reachable within a 20-minute train journey, while local amenities are a short drive away.

“The acquisition is in line with our strategy to strengthen CLAS’ presence in key markets while building a resilient portfolio anchored by stable and recurring income streams. It expands our living sector portfolio with prime rental housing, which is seeing high demand from the large and diverse working-age population in Greater Tokyo amid limited new supply. The three properties will benefit from strong corporate demand from nearby industrial areas and offer an idyllic coastal lifestyle that appeals to working professionals. We will continue to actively reconstitute and enhance our portfolio in Japan. We remain committed to delivering stable long-term returns to our Stapled Securityholders.” Ms Serena Teo, Chief Executive Officer of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the Managers of CLAS)

The trust now holds 35 properties across Japan, including hotels and student accommodation. CLAS has recently been active in refreshing its portfolio, having divested Citadines Central Shinjuku Tokyo in October 2025 at a significant premium of approximately 100 per cent to book value. Capital from such sales is being used to fund asset enhancements, repay high-interest debt and reinvest in higher-yielding properties. Renovations at Sotetsu Grand Fresa Osaka-Namba are currently underway and should be finished by the final quarter of 2026.