Starts Proceeds REIT Reacquires Two Previously Disposed Properties, Also Acquires Two Newly Built Sponsor Properties

2026/03/31

Starts Proceeds Investment Corporation will acquire four rental residential properties in the Tokyo metropolitan area from its sponsor, Starts Development, on March 31 and April 24, 2026. The combined acquisition price is approximately JPY 2,854 million. Most notably, two of the four assets are properties the REIT had previously sold in April 2023 and is now reacquiring.

The two reacquired assets are Proceed Koenji Minami in Suginami Ward, acquired for JPY 251 million, and Proceed Kashiwa Trois in Kashiwa City, acquired for JPY 688 million. Koenji Minami had originally been sold in April 2023 because the property was more than 30 years old and was expected to entail a growing maintenance burden. Kashiwa Trois had also been sold at that time, with the REIT booking a reserve related to tax deferral on asset replacement while also anticipating future excess profit distributions. However, both properties continued to post stable occupancy after disposition, and the REIT confirmed upside potential for rent growth. It therefore decided to reacquire them as assets offering a balance of profitability, growth potential and stability.

The two newly built assets are Proceed Kasai 3 in Edogawa Ward, acquired for JPY 980 million and completed in January 2025, and Proceed Fuchu Miyanishi in Fuchu City, acquired for JPY 935 million and completed in July 2025. Proceed Kasai 3 is an eight-minute walk from Kasai Station on the Tokyo Metro Tozai Line, while Proceed Fuchu Miyanishi is an eight-minute walk from Bubaigawara Station on the JR Nambu Line and Keio Line. Both offer convenient access to central Tokyo. Occupancy at the two properties stands at 99.7% to 100.0%, underscoring the REIT’s stable external growth through its sponsor pipeline.

Key Facts

Buyer:
Starts Proceeds Investment Corporation
Seller:
Starts Development Co., Ltd.
Total Acquisition Price:
JPY 2,854 million
Property Name: Proceed Kasai 3
- Acquisition Price:
  JPY 980 million
- Appraised Value:
  JPY 982 million
- Capitalization Rate:
  3.4%
- Location:
  5-22-17 Nakakasai, Edogawa-ku, Tokyo
- Nearest Station:
  8-minute walk from Kasai Station on the Tokyo Metro Tozai Line
- Completion:
  January 2025
- Number of Floors:
  5F
- Gross Floor Area:
  Approx. 331 tsubo (approx. 11,739 sq. ft.)
- Total Units:
  29
- Occupancy Rate:
  100.0%
Property Name: Proceed Fuchu Miyanishi
- Acquisition Price:
  JPY 935 million
- Appraised Value:
  JPY 1,020 million
- Capitalization Rate:
  3.8%
- Location:
  4-16-16 Miyanishi-cho, Fuchu, Tokyo
- Nearest Station:
  8-minute walk from Bubaigawara Station on the JR Nambu Line and Keio Line; 9-minute walk from Fuchuhommachi Station on the JR Nambu Line and Musashino Line
- Completion:
  July 2025
- Number of Floors:
  13F
- Gross Floor Area:
  Approx. 389 tsubo (approx. 13,807 sq. ft.)
- Total Units:
  25
- Occupancy Rate:
  99.7%
Property Name: Proceed Koenji Minami
- Acquisition Price:
  JPY 251 million
- Appraised Value:
  JPY 275 million
- Capitalization Rate:
  4.4%
- Location:
  5-2-9 Koenji Minami, Suginami-ku, Tokyo
- Nearest Station:
  6-minute walk from Higashi-Koenji Station on the Tokyo Metro Marunouchi Line; 10-minute walk from Nakano Station on the JR Chuo Line, JR Sobu Line and Tokyo Metro Tozai Line
- Completion:
  October 1989
- Number of Floors:
  4F
- Gross Floor Area:
  Approx. 115 tsubo (approx. 4,083 sq. ft.)
- Total Units:
  20
- Occupancy Rate:
  100.0%
Property Name: Proceed Kashiwa Trois
- Acquisition Price:
  JPY 688 million
- Appraised Value:
  JPY 713 million
- Capitalization Rate:
  4.1%
- Location:
  3-9-3 Kashiwa, Kashiwa, Chiba
- Nearest Station:
  7-minute walk from Kashiwa Station on the JR Joban Line and Tobu Urban Park Line
- Completion:
  May 2009
- Number of Floors:
  7F
- Gross Floor Area:
  Approx. 375 tsubo (approx. 13,297 sq. ft.)
- Total Units:
  38
- Occupancy Rate:
  95.1%