As one of the global mega-cities and the centre of monocentric Japan at the same time, Tokyo is a perfect investment location.
Success through local presence
AM ALPHA has been active in the Japanese real estate market for more than ten years. While the investment focus initially lay on office properties, it switched to residential properties lately. In various transactions, AM ALPHA has recently acquired numerous residential buildings, all located in the central districts of Tokyo, the so-called 23 wards. All buildings are excellently connected to the public transport network due to their central locations.
Each of the residential buildings bears the signature of renowned Japanese project developers. Some properties were already completed at the time of purchase, others are still under construction. The completion of all buildings is scheduled for the turn of the year 2023/24.
![[Translate to EN:] Eine der Immobilien von AM ALPHA in Tokio.](/fileadmin/APAC/AM_Alpha-Tokio-31.jpg)
"The portfolio's occupancy rate is outstandingly great" says Masatomo Okamoto, Head of AM ALPHA Japan. "As Tokyo remains the nation's economic powerhouse, it will continue to attract a steady stream of young people seeking education and employment opportunities here long term. Demand for housing will thus remain high, generating sustainable, stable cash flows for our investment partners."
The 23 wards - hotspot and sought-after residential location
Japan's capital is famous for its history, culture, and tradition. Today's Tokyo consists of a multitude of cities and districts. When people speak of the city, however, they usually mean the 23 wards, the central Tokyo districts. Tokyo was voted No. 1 in Condé Nast Traveler's readers' poll of the world's most attractive cities in both the U.S. and U.K. editions of the magazine. Residents and tourists love this part of the city because there is a vast range of shops, sights, restaurants, and bars. So, it is no surprise that residential property is in high demand here. “Given the non-discretionary nature of the multifamily sector, the institutionalization of the sector and the attractive financing terms available, we believe this sector has the most potential for further yield compression going forward”, explains Okamoto.
Masatomo Okamoto, Head of Japan
"We will use the existing structure to acquire more properties in Japan. In addition to generating stable income, our focus lies primarily on residential properties with upside potential. The recent transaction underpins AM ALPHA's conviction that showing local presence is the right way to invest in real estate in Asia. As one of the global mega-cities and the centre of monocentric Japan at the same time, Tokyo is a perfect investment location for achieving this."
