Billionaire Kwek Leng Beng’s CDL Buys Tokyo Apartments For $234 Million, Steps Up Global Expansion

Forbes Asia Billionaire Kwek Leng Beng’s CDL Buys Tokyo Apartments For $234 Million, Steps Up Global Expansion Jonathan Burgos Forbes Staff Following Sep 28, 2023, 06:55am EDT | Share to Facebook Share to Twitter Share to Linkedin Kwek Leng Beng speaks to the media as Sherman Kwek looks on during a news conference in Singapore on ... [+] August 11, 2017. Nicky Loh/Bloomberg City Developments Ltd. (CDL)—controlled by billionaire Kwek Leng Beng —said it has bought a portfolio of 25 freehold residential assets in Tokyo for 25 billion yen ($234 million), doubling its assets in Japan as the Singapore developer steps up its overseas expansion drive. The residential portfolio, comprised of 836 units (including four retail shops), across Tokyo, marks CDL’s largest transaction in the Japanese private rental sector. The newly acquired assets are in the city’s prime residential areas, with an average occupancy rate of around 97% and can provide stable rental income. “This investment marks the group’s entry into Tokyo’s rental housing market,” Sherman Kwek, CDL Group CEO, said in a statement . “This move is aligned with our strategy of expanding in the global living sector to enhance our recurring income.” Following the completion of the acquisition, the company will have more than 70 billion yen worth of assets in Japan, spread across 38 properties with more than 2,100 residential units, in Tokyo, Osaka and Yokohama. “Despite economic volatility over the past few years, our Japan portfolio has remained resilient, with stable rental growth and a strong occupancy level of above 95%,” Sherman said. CDL has been stepping up acquisitions this year despite a continued tightening in interest rates globally. The company bought the historic London waterfront landmark St Katharine Docks in central London for £395 million (about $500 million) in March, and has since acquired hotels in Brisbane, Tokyo and Seoul to tap into the post-pandemic tourism boom. MORE FOR YOU L A Rams Star Cooper Kupp Lists Off Season Oregon Home With Training Facility For 3 5 Million Sir Elton John Lists Longtime Atlanta Home For Nearly 5 Million Inside A Sprawling 8 Million Spread In One Of Colorado s Prettiest Ski Towns “In the years to come, I would like CDL to have more presence in many parts of the world,” Kwek, 82, executive chairman of CDL, said on September 5 as the company celebrated its 60th anniversary. “I think there are opportunities, but all we need to do is to grab them and ride the storm.” Around the world, the group had S$31 billion ($23 billion) of total assets as of end-June, with Singapore accounting for more than half. Properties in Australia, China, Japan, the U.K., and the U.S. account for the rest. The elder Kwek is also the executive chairman of Singapore’s Hong Leong Group, which was founded by his father in 1941. His billionaire cousin Quek Leng Chan runs a separate group in Malaysia called Hong Leong Co. (Malaysia), which has interests in finance, food and property. With a net worth of $11 billion that he shares with his family, Kwek was ranked No. 5 on the list of Singapore’s 50 Richest that was published earlier this month. Send me a secure tip . Jonathan Burgos Editorial Standards Print Reprints & Permissions