TE Capital Teams With Dash Living to Buy Tokyo Multi-Family Building

Singapore’s TE Capital Partners has set up a joint venture with rental apartment specialist Dash Living to acquire a residential building in central Tokyo’s Minato ward.

TE Capital will hold a majority stake in the 130-unit multi-family property in the upscale neighbourhood of Minami Azabu, while Dash will maintain a minority ownership interest, the companies said Tuesday in a release. The deal value wasn’t provided.

The asset, known as Dash Living Minami Azabu, will be operated by property manager Dash, a portfolio company of Rava Partners, the real estate division of Hillhouse Investment. The 10-storey building will undergo comprehensive renovations and refurbishments to enhance unit interiors, according to the announcement.

“This acquisition reinforces our conviction in Tokyo’s residential sector, particularly the robust demand for furnished apartments fuelled by sustained inbound migration and tourism,” said Terence Teo, managing partner of TE Capital Partners. “Through our partnership with Dash Living, we will deliver premium, flexible living solutions tailored to the evolving needs of future residents.”

Team Effort

TE Capital and Dash have invested in the Minato ward property alongside local asset manager Alyssa Partners, which first announced the acquisition of what was then known as Lumiec un Minami Azabu in late July, noting at the time that it was working with overseas partners. Alyssa Partners and Dash are understood to hold minor stakes in the asset, with TE Capital holding the majority share of the equity.

Dash Living Minami Azabu offers units with an average size of 45 square metres (484 square feet). Located a seven-minute walk from Shirokane-Takanawa station and one stop from Azabu-Juban station — both served by the Toei and Tokyo Metro lines — the building is surrounded by foreign embassies and international schools in Minato ward, making it a sought-after location, Dash said.

The Hong Kong-based residential specialist said in mid-2024 that it had tied up with US asset management giant BlackRock to acquire an apartment building in Tokyo, and it announced in February this year that it had grown its Japan portfolio to 19 locations through partnerships with BlackRock, Greystar and Schroders Real Estate.  

“Dash Living Minami Azabu marks our largest asset in Japan to date and represents a significant milestone for the group,” said Dash CEO Aaron Lee. “We are confident that its mixed long-stay and short-stay model will meet the evolving demand for flexible living in Tokyo.”

TE Capital has been acquiring residential properties in Japan since 2020, with the Singaporean investment manager also holding a majority stake in local asset manager Tokyo Trust Capital. After buying a $50 million portfolio of Tokyo apartment assets in 2020, TE vaulted pandemic-induced hurdles to acquire 16 Tokyo rental residential properties for around $100 million in 2022. 

More recently Tokyo Trust bet on Japan’s commercial markets, with a retail acquisition in Osaka, with the two companies having teamed up to acquire a 12-storey office block in Tokyo’s Chuo ward in a deal that closed last month.   

Growing Platform

Rava Partners is committing up to $150 million to grow Dash Living, the Hillhouse unit said in April as it announced its acquisition of a majority stake in the platform.

First established in 2014 and already backed by MindWorks, Grosvenor and Cyberport, Dash manages over 2,000 rooms across Hong Kong, Singapore, Japan and Australia.

Lee told Mingtiandi in April that he saw the Rava investment allowing Dash to expand its geographic reach while also expanding its services to new formats, including managing properties catering to families and groups.

With Rava investing in the management business, Dash expects to continue working alongside fund managers such as BlackRock, PGIM Real Estate, Hines and Greystar as it expands its operations and investments.