Heiwa Real Estate REIT Acquires Two Residential Assets in Tokyo for JPY 2.27 Billion

On July 8, Heiwa Real Estate REIT announced the acquisition of two relatively new rental residential properties in Tokyo for a combined total of JPY 2.27 billion. The trust plans to close on HF Hikifune Residence EAST on August 7 and HF Omori Residence on August 8. Both assets are constructed with reinforced concrete (RC) and currently maintain a 100% occupancy rate. The respective NOI yields are 4.1% and 4.2%.

The REIT, which has a relatively high proportion of office properties in its portfolio, aims to enhance its residential exposure to achieve greater asset-type diversification and internal growth potential. The Hikifune property is located in a redeveloped area served by two stations and three train lines, comprising 28 units catering to singles and DINKs households. The Omori property, offering 38 units, is situated in a retail-rich area with convenient access to Haneda Airport. Despite being a leasehold asset, it has strong seismic resilience with a PML of 4.0%. Property management is handled by Haseko Livenet and Tokyu Housing Lease.

Key Facts

• Property Name: HF Hikifune Residence EAST

  • Buyer: Heiwa Real Estate REIT, Inc.

  • Seller: Undisclosed

  • Transaction Price: JPY 970 million

  • Location: 1-51-19 Kyojima, Sumida-ku, Tokyo

  • Nearest Station: 4-minute walk from Keisei Hikifune Station (Keisei Oshiage Line)

  • Completion: September 2021

  • Number of Floors: 6F

  • Total Units: 28

  • Gross Floor Area: 915.23㎡ (approx. 9,849 sq. ft.)

• Property Name: HF Omori Residence

  • Buyer: Heiwa Real Estate REIT, Inc.

  • Seller: Undisclosed

  • Transaction Price: JPY 1.3 billion

  • Location: 2-4-12 Omorikita, Ota-ku, Tokyo

  • Nearest Station: 8-minute walk from Omori Station (JR Keihin-Tohoku Line)

  • Completion: February 2024

  • Number of Floors: 14F

  • Total Units: 38

  • Gross Floor Area: 1,208.57㎡ (approx. 13,010 sq. ft.)