Lone Star Funds Completes Sale Of Japanese Rental Property Asset

KUALA LUMPUR, April 3 (Bernama) -- Lone Star Funds (Lone Star) has announced that an affiliate of Lone Star Real Estate Fund VI L.P. has successfully completed the sale of Tokyo β (Tokyo Beta), one of the largest rental property assets in Tokyo.

According to Lone Star in a statement, Tokyo Beta was formed after the company acquired more than 1,000 non-performing loans in Japan between 2020 and 2022.

Following this acquisition, Lone Star restructured the management of nearly 1,200 shared housing units previously handled by over 200 different property managers to streamline operations under a unified platform designed for young professionals and students, offering affordable rental options.

Lone Star global head of commercial real estate, Jérôme Foulon noted that the sale marks the successful restructuring of the portfolio, transforming it into a highly appealing rental community in Tokyo.

Meanwhile, its head in Japan, Mitsuo Matsunaga emphasised that this investment highlights the company’s ability to create valuable businesses that benefit both investors and Japanese consumers through improved services and products.

The rebranded Tokyo Beta now features more than 16,000 rentable rooms, making it one of the largest rental property assets in Tokyo.

New services introduced recently include a smartphone rental app, simplified check-in and check-out, energy-saving utilities and fixtures, and commuter-friendly electric scooters, all to further appeal to a new generation of young renters in the region.

Lone Star has been actively investing in Japan for over 28 years, committing US$9.6 billion in equity capital to assets across nearly 90 investments, making it one of the most prominent investors in the region. (US$1=RM4.45)

-- BERNAMA