Germany’s AM Alpha Sells Tokyo Multi-Family Asset to Mitsui Private Fund

German family office AM Alpha has sold a newly completed rental apartment building in eastern Tokyo to a private fund managed by Mitsui & Co.

The 10-storey multi-family asset in Koto ward, known as Alpha Prime Toyocho, was developed by Japanese construction giant Daiwa House Industry, which delivered the project in January of this year, AM Alpha said Wednesday.

After acquiring the property in 2022 while still under construction, AM Alpha significantly increased the value through a successful leasing campaign, according to the Munich-based firm.

“Although the building was expected to yield an attractive return, we decided on an early sale,” Masatomo Okamoto, AM Alpha’s head of Japan, said in a release. “This allows us to realise the value growth and reinvest the capital in new, growth-oriented projects that align with our long-term strategy.”

Economy Driving Demand

Financial terms of the deal weren’t disclosed. Mitsui & Co Realty Management bought Alpha Prime Toyocho on behalf of its flagship MBRM Fund and has begun management operations of the asset, according to a separate statement. The private fund was launched in 2022 and targets an asset scale of “several hundred billion yen”.

The 174-unit building sits a 10-minute walk from Toyocho railway station and comprises 6,493 square metres (69,890 square feet) of total floor area. The project received the highest rating of five stars under Japan’s BELS energy-efficiency certification.

An apartment listing website shows monthly rents at Alpha Prime Toyocho in the range of JPY 152,000 to JPY 155,000 ($940 to $958.50) for 16 units, each with an area of 35 square metres.

Okamoto noted that Japan’s economic growth has given a boost to employment and wages, driving demand for housing at a time when the market has a limited supply of new projects.

“Tokyo, as Japan’s economic powerhouse, will particularly benefit from this trend,” he said. “The Greater Tokyo real estate market, with its 36 million residents, is vast and very liquid. These are perfect conditions for real estate investments for institutional investors, especially for foreign investors who also benefit from a weak yen.”

ESG Cred Valued

JLL acted as sole advisor on behalf of AM Alpha, which German-language websites identify as the family office of Wolfgang Egger, founder of investment manager Patrizia.

“This transaction was made possible by successfully matching the asset with the investment needs of the buyer, who valued highly the ESG credentials that Alpha Prime Toyocho possessed,” said Masayuki Takahashi, senior director on the consultancy’s Japan capital markets team. “JLL will continue to support domestic and international investors in the sale and purchase of various asset types, including residential properties.”

AM Alpha’s previous Asia Pacific property investments include Robinson 112, a 1980-vintage office block on Singapore’s Robinson Road, which the firm acquired in late 2021 for S$269.7 million (then $198.2 million).

The Singapore buy capped a busy year for AM Alpha, which also picked up office projects in Dublin, London and Paris, plus a set of 31 residential assets in Tokyo, during 2021.

During 2024 the firm has been ramping up its presence in Asia Pacific, announcing in May that it added former DLA Piper partner Les Koltai as head of Australia and Caroline Dellasega, based in Singapore, as vice president of investor relations.