Family Office Am Alpha Sells Tokyo Apartment Building Mitsuis Private Fund
Munich-based family office AM Alpha has recently sold a newly completed residential building in Koto ward, located in eastern Tokyo, Japan. The buying party is Mitsui & Co. Realty Management (MBRM), a private fund under Mitsui & Co., one of the largest conglomerates in Japan. The deal was advised by JLL on behalf of AM Alpha.
The 10-storey Alpha Prime Toyocho building was completed in January 2024 and consists of 174 apartments, primarily targeting singles and DINKS (dual income, no kids). These apartments come in various configurations such as one-room studios with kitchens, one-bedroom apartments with separate kitchens and dining areas, and one-bedroom apartments with separate living, dining, and kitchen spaces.
The building is constructed with reinforced concrete and has been awarded the highest rating of five stars from BELS (Building-Housing Energy-Efficiency Labelling System), setting a new benchmark for energy efficiency in the Japanese market.
AM Alpha had acquired the property in 2022 while it was still under construction. With over 10 years of experience in the Japanese real estate market, AM Alpha identified the building for its “develop-to-core” investment strategy, which involves developing a high-quality, well-located, and low-risk property or core asset that generates stable and predictable income streams.
“Although the building [Alpha Prime Toyocho] was expected to yield an attractive return, we decided on an early sale,” said Masatomo Okamoto, AM Alpha’s head of Japan, in a statement.
The residential building is just a 10-minute walk from Toyocho Station on the Tokyo Metro Tozai Line, with a seven to nine-minute commute to Nihonbashi Station and Otemachi Station, respectively. According to Masayuki Takahashi, senior director of capital markets for JLL Japan, residential properties continue to be a popular asset class for both domestic and international investors due to their stable earnings and high rental growth rates.
In addition to the sale of the residential building in Tokyo, AM Alpha is also divesting its newly refurbished freehold office building, 112 Robinson, in Singapore’s CBD. Cushman & Wakefield (C&W) and CBRE have been appointed as joint marketing agents for the property, with an asking price of $346.7 million or $3,800 psf based on the net lettable area of 91,238 sq ft.
AM Alpha had acquired 112 Robinson in December 2021 for $269.7 million or $2,925 psf on the net lettable area. The property features an F&B unit on the ground floor and office spaces on the second to 14th floors.
Enhancements were made to the property, such as an overhaul of the façade, addition of an F&B space in the lobby, refurbishment of common areas, and the installation of a nursing room and end-of-trip facilities. The building has been awarded a BCA Green Mark Platinum Super Low Energy rating.
According to Shaun Poh, executive director of capital markets at C&W, the refurbishments have given the property a fresh new look. The building is conveniently located near four MRT stations, making it highly accessible for tenants. Currently, it is almost fully occupied, with a well-staggered lease expiry profile, according to Michael Tay, head of capital market at CBRE.
The property will be sold through an expression of interest that will close on July 18.
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