SINGAPORE (Oct 18): City Developments Ltd (CDL) announced that its special purpose company, Iconique Tokutei Mokuteki Kaisha, has signed an agreement with Mitsui Fudosan Residential for a 20% stake in a prime residential development in Tokyo.

The development named Park Court Aoyama The Tower sits on a freehold land site, has a gross development value of about S$668 million (RM2.02 billion), and is located in the Aoyama area in Minato ward.

The development comprises a 26-storey tower with 163 apartments and facilities such as a gym and swimming pool, as well as 93 parking lots. Show flat previews have begun and prices for the initial 55 units start from ¥178.8 million (RM7.2 million) for a one-bedroom unit to ¥271 million for a three-bedroom unit.

“This investment is in line with CDL’s diversification strategy to accelerate our overseas expansion,” says Sherman Kwek, deputy chief executive officer, CDL.

“Japan’s real estate sector, in particular within Tokyo, is experiencing a strong boom in its residential market with robust demand for well-located condominiums in the central five wards,” Kwek adds, ”in land-scarce Tokyo, this is a rare opportunity to participate in a prime freehold residential development.”

This is the second time CDL has worked together with Mitsui Fudosan Group, with CDL’s hospitality subsidiary’s Millennium Mitsui Garden Hotel Tokyo managed by Misui Fudosan Group. To date CDL has invested more than ¥50 billion in two residential development and three hotels in Tokyo, and will continue to source for opportunities and further its residential, office and hospitality presence in Japan.

Shares of CDL are down three cents at S$8.75. — theedgemarkets.com.sg

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