Higashi Kanda Terrace Residence in Chiyoda ward (Image: Alyssa Partners)
Alyssa Partners on Thursday announced its purchase of a central Tokyo residential building alongside a subsidiary of Japanese conglomerate Mitsui & Co, with market sources confirming a deal size of $80 million.
The acquisition of Higashi Kanda Terrace Residence in Chiyoda ward was made in partnership with Mitsui & Co Digital Asset Management and a third domestic institutional investor, Alyssa said in a release. The 13-storey tower contains 132 rental units ranging from 27 to 64 square metres (291 to 689 square feet) and two retail spaces.
Alyssa’s latest buy gives the investment manager a residential portfolio of JPY 270 billion ($1.76 billion) across 152 properties and over 7,500 units in Japan, said managing partner, CEO and co-CIO Chedli Boujellabia.
“Given its prime location and the quality of the building, the asset is well positioned to maintain its high occupancy rate and capture future rental growth,” Boujellabia said.
Token Offering
Situated in the Higashi Kanda area on the eastern edge of Chiyoda, near Chuo and Taito wards, the 2018-built Higashi Kanda Terrace Residence is within a six-minute walk of Iwamotocho station on the Shinjuku subway line and Bakurocho station on the JR Sobu railway line. A key hub, the Akihabara interchange station, is seven minutes by foot.
Alyssa managing partner, CEO and co-CIO Chedli Boujellabia
The transit-rich location attracted Mitsui & Co DAM, which is 53 percent owned by Mitsui & Co and lets individuals invest in digital securities backed by real estate, known as tokenisation. The company launched the Alterna platform for tokenised real estate in 2021.
The Chiyoda property’s large scale, strong brand equity and superior accessibility present a distinctive opportunity for a security token offering, said Hirokazu Deki, chief investment officer at Mitsui & Co DAM.
“We believe this offering provides fund investors with access to a scarce, institutional-grade residential asset,” Deki said. “Going forward, while continuing to manage and invest across a diverse range of asset classes, we will maintain a strategic focus on the residential market, particularly in central Tokyo.”
Recent Investments
A manager of JPY 365 billion in assets across residential, hotel and logistics properties, Alyssa most recently invested in Dash Living Minami Azabu alongside the Hong Kong-based rental apartment specialist and Singapore’s TE Capital Partners.
The 130-unit property in Tokyo’s Minato ward is operated by Dash, a portfolio company of Rava Partners, the real estate division of private equity major Hillhouse. Alyssa and Dash hold minor stakes in the asset, with TE Capital holding the majority share of the equity.
Last September, Alyssa announced the purchase of 22 residential properties on behalf of an investor believed to be Singapore’s GIC through a joint asset management mandate with another Rava portfolio company, Samty Holdings.
Beyond its traditional multi-family focus, Alyssa in May revealed a partnership with Mitsubishi HC Capital Realty to acquire The Lively Fukuoka Hakata hotel.
In late 2024, 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 (1.1 million square feet), marking the first Japan logistics acquisition for both companies.
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