Alyssa Partners Buys Tokyo Apartment Complex to Push Multi-Family AUM Past $1.3B

Japan’s busiest investment manager in the multi-family space has scored another deal, with Alyssa Partners on Wednesday announcing the acquisition of a central Tokyo apartment complex for an undisclosed price.

Alyssa purchased the 130-unit Lumiec un Minami Azabu in Minato ward under a partnership with an offshore investor with an existing presence in Japan, the company said in a release. The seller wasn’t disclosed.

With the latest buy, Alyssa’s multi-family assets under management now exceed JPY 200 billion ($1.3 billion) as the firm’s residential portfolio rises to more than 6,000 apartment units in key cities of Japan, according to managing partner, CEO and co-CIO Chedli Boujellabia.

“We are very excited to add this rare and sizeable investment opportunity in Minami Azabu to our portfolio,” Boujellabia said. “Given its prime location and units size, the property is well positioned to attract both domestic and international tenants.”

Upmarket Digs

Located in Minato’s upscale neighbourhood of Minami Azabu, Lumiec un Minami Azabu offers high-quality units with an average size of 45 square metres (484 square feet), according to Alyssa.

The 2006-completed building is seven minutes by foot from Shirokane-Takanawa subway station in an area home to several embassies and international schools.

The deal marks Alyssa’s second multi-family acquisition in Minato during the last five months, following the Tokyo-based firm’s tie-up with Kuala Lumpur-based LGB Group to purchase the 134-unit Grand Concierge Roppongi for a consideration of more than JPY 10 billion.

The seller of the Grand Concierge wasn’t disclosed, with Alyssa describing the counterparty as an affiliate of a major Japanese conglomerate. Online sources indicate that Grand Concierge Roppongi was owned by Mitsui & Co Digital Asset Management as of May 2023.

Spreading Bets Around

Boujellabia told MTD TV in March that Alyssa hoped to add at least $1 billion in assets under management in 2025, of which the majority would be residential assets.

Despite the multi-family focus, Alyssa’s JPY 300 billion in total AUM also includes hospitality, logistics, office and retail properties, with the investment manager in May revealing a partnership with Mitsubishi HC Capital Realty to acquire The Lively Fukuoka Hakata hotel.

Late last year, Alyssa teamed with China’s JD Property to buy two GLP warehouses in Chiba and Nagoya with a total gross floor area of 103,000 square metres, marking the first Japan logistics acquisition for both companies.