Business Times: Thu, Aug 09
CAPITALAND announced yesterday that it will be part of a joint venture to develop The Parkhouse Nishi-Azabu Residence, a residential project in Tokyo.
Together with Mitsubishi Jisho Residence (MJR) - a wholly-owned subsidiary of Mitsubishi Estate Co Ltd (MEC) - and SECOM Home Life Co Ltd (a wholly-owned subsidiary of SECOM), the joint venture will see the construction of a 24-storey building in Tokyo's Minato ward. When completed, it is expected to be the tallest residential building in the Nishi-Azabu area.
Strategically located in a prestigious residential area popular with diplomats, senior executives and expatriates, the 32,625 square foot site will have 190 units ranging from studios to three-bedroom apartments.
CapitaLand had pledged a 20 per cent investment in the project while MJR and SECOM hold 70 and 10 per cent shares respectively.
Construction of the building has already begun and is being targeted for completion by the second quarter of 2014 with its official launch tentatively set for Q4 this year.
Mitsubishi is no stranger to CapitaLand. Both organisations are currently in three other joint ventures (JVs) - two in Singapore and one in Vietnam.
In Singapore, MEC holds a 25 per cent JV stake in Sky Habitat (CapitaLand's residential development in Bishan Central) and a 10 per cent JV stake in CapitaGreen (an office development in the Central Business District).
Previously also, CapitaLand and MEC collaborated in the building of Shinjuku Front Square, a residence-commercial complex in Shinjuku, Tokyo.
Although the Japanese economy has been receiving flak for its lacklustre performance, CapitaLand Commercial Ltd CEO Chong Lit Cheong said: "Tokyo remains one of the top five global cities. The residential sector was the best performing real estate sector in the country in 2011 and market conditions continue to favour the sector."
Furthermore, land prices in Japan have been on the decline, as compared to before the 2008/2009 global financial crisis. The decline in average land prices was 2.8 per cent in 2011, a survey by the Tokyo National Tax Agency showed. This was, however, slightly better than the dip of 3.1 per cent the previous year.
CapitaMalls, a listed entity of the CapitaLand Group, also recently announced its acquisition of Olinas Mall, one of the biggest malls in Kinshicho in the Sumida ward of Tokyo, with a total gross floor area of about 583,000 sq ft.
It was acquired for 22.8 billion yen (S$361 million), a 2.6 per cent discount on the latest valuation of the mall of 23.4 billion yen on June 30.
Currently, CapitaLand's assets under management (AUM) in Japan include 3,447 units of residential properties, eight retail malls, four serviced residences, and an office building.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
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