Dash Living Partners with BlackRock to Invest in Japan

Japan’s rental housing sector received a boost with Dash Living, Asia Pacific’s leading provider of rental housing, joined hands with BlackRock, through a fund managed by its Real Estate business, to invest in an upscale multifamily asset in Japan.

This acquisition highlights the dedication of both companies to seek out value-add rental uplift opportunities by transforming residential buildings into flexible accommodations for business and leisure travellers in Japan.

The newly acquired 29-unit property in Higashi Komagata in Tokyo, is conveniently located within a five-minute walk to major subway lines (both Ginza Line and Asakusa Line), offering easy access to multiple central business districts in just 20 to 30 minutes.

Situated near popular attractions like the Asakusa Shrine and the Asahi Beer Factory, the property promises a memorable stay for its guests. Japan is on course to achieve the government’s goal of topping the pre-pandemic figure of 32 million annual foreign visitors by 2025, with the January-March quarter in 2024 seeing a record 8.56 million, according to the Japan National Tourism Organisation.

Dash Living in Japan

In recent years, Dash Living has made significant investments in the Japanese market through multiple joint ventures and programs with global asset managers and financial institutions.

This latest collaboration with BlackRock’s Real Estate business adds to Dash Living’s expanding portfolio to its 15^th location, following recent acquisitions including the rebranded Dash Living Ikebukuro West, Dash Living Ryogoku in a joint venture with another leading asset manager, Dash Living Ueno Park and Dash Living Yoyogi Uehara in partnership with the crowdfunding listed platform Creal.

Dash Living’s CEO and Founder Aaron Lee said that they were thrilled to introduce their multifamily assets investment in Japan alongside BlackRock’s Real Estate business, seizing opportunities in the country’s thriving real estate market. Our collaboration with the real estate arm of the world’s largest asset manager demonstrates our ability to deliver attractive returns for investors, Aaron Lee said.

“With a strong commitment to Japan, we are dedicated to further expanding our investment and growth opportunities to offer upscale and flexible accommodations in convenient and charming neighbourhoods throughout Tokyo,” Aaron Lee added.

Daigo Hirai, BlackRock Managing Director and Head of Japan Real Estate, said that Japan’s real estate market for multifamily assets has been highly attractive and offers substantial opportunities given the surge in business travel and tourism.

“We are excited to be collaborating with Dash Living to capitalise on this burgeoning demand by repositioning multifamily assets to generate value-add returns for our investors,” Hirai added.

Property Prices Up

According to a latest survey by Mitsubishi UFJ Trust and Banking, property prices in Tokyo are expected to increase by around 8% annually. This news is drawing the attention of many investors to start securing properties in Tokyo. Prices for newly built condominiums in Tokyo’s 23 wards are continuing to rise by about 7% annually.

“Despite some challenges like the yen’s depreciation and fluctuations in corporate performance due to the US interest rate hike of 2023, Tokyo’s real estate market stays strong. Most respondents see big price hikes, especially in Central Tokyo,” the survey findings showed.

In fact, Tokyo’s real estate market hit a significant stride in 2024, leveraging a mix of enduring low-interest rates, robust demand across multiple sectors, and an evolving landscape influenced by both domestic and international dynamics. This year’s market is vibrant, with distinct opportunities and challenges sculpting the path for investors and homeowners alike, according to another report.