Family office AM Alpha sells Tokyo apartment building to Mitsui's private fund

Munich-based global family office AM Alpha has sold a newly completed residential building in Koto ward, in eastern Tokyo, Japan. The buyer is Mitsui & Co. Realty Management (MBRM), a private fund under Mitsui & Co., one of the largest conglomerates in Japan. JLL advised AM Alpha on the deal. The 10-storey Alpha Prime Toyocho building has 174 apartments. They are targeted at singles and DINKS (dual income, no kids) and come in the following configurations: one-room studios with kitchens, one-bedroom apartments with separate kitchens and dining, and one-bedroom apartments with separate living, dining, and kitchens. The property is a reinforced concrete structure and was completed in January 2024. It has received the highest rating of five stars from BELS (Building-Housing Energy-Efficiency Labelling System), which has set a new benchmark for energy efficiency in the Japanese market. Read also: AM Alpha to sell freehold office building 112 Robinson for $346.7 mil Advertisement Advertisement AM Alpha acquired the property in 2022 while it was still under construction. Having been active in the Japanese real estate market for over 10 years, AM Alpha had identified the property for its "develop-to-core" investment strategy, where it develops a high-quality, well-located and low-risk property or core asset that generates stable and predictable income streams.

‘Early sale’

"Although the building [Alpha Prime Toyocho] was expected to yield an attractive return, we decided on an early sale," says Masatomo Okamoto, AM Alpha's head of Japan, in a statement. The residential building is a 10-minute walk to Toyocho Station on the Tokyo Metro Tozai Line, and it takes seven to nine minutes by train to Nihonbashi Station and Otemachi Station, respectively. Masayuki Takahashi, senior director of capital markets for JLL Japan, says residential properties remain an attractive asset class for domestic and international investors due to their stable earnings and current high rental growth rates. Divesting the building allows AM Alpha to "realise the value growth and reinvest the capital in new, growth-oriented projects that align with our long-term strategy", according to AM Alpha's Okamoto.

Sale of freehold office building in Singapore

The residential building in Tokyo is not the only thing that AM Alpha is divesting. Last month, AM Alpha offered for sale its newly refurbished freehold office building in Singapore's CBD, 112 Robinson. Read also: AM alpha buys historic Edwardian-style office building in Manchester Advertisement Advertisement AM Alpha has appointed Cushman & Wakefield (C&W) and CBRE joint marketing agents for 112 Robinson. Based on the net lettable area of 91,238 sq ft, the asking price is $346.7 million, or $3,800 psf. The divestment of 112 Robinson comes less than three years after AM Alpha purchased the property in December 2021 for $269.7 million, or $2,925 psf on the nett lettable area. 112 Robinson has an F&B unit on the ground floor and office spaces on the second to 14th floors.

Completion of asset enhancements

AM Alpha's asset enhancements included overhauling the façade, adding an F&B space in the lobby, refurbishing the common areas, and adding a nursing room and end-of-trip facilities. The property has a BCA Green Mark Platinum Super Low Energy rating. According to Shaun Poh, executive director of capital markets at C&W, the refurbishment works "have given the property a breath of fresh air". The office building is 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 fully leased, with "a well-staggered lease expiry profile", says Michael Tay, CBRE's head of capital market. The building will be sold via an expression of interest that will close on July 18. Read also: AM alpha’s timing-driven, value-add real estate play Advertisement Advertisement