Lone Star Funds (“Lone Star”) today 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.
Tokyo Beta was formed by Lone Star following the successful purchase of over one thousand non-performing loans in Japan between early 2020 and late 2022. Following its acquisition, Lone Star restructured the management of nearly 1,200 shared houses from a total of more than 200 different individual property managers, to streamline operations on a single coordinated platform of affordable rental units designed for and utilized by young professionals and students.
Today, total rentable rooms in the rebranded Tokyo Beta portfolio exceeds 16,000, comprising 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.
“Today’s announcement is the culmination of several years of work to successfully restructure and revitalize this portfolio, making it one of the most attractive rental communities in Tokyo,” said Jérôme Foulon, Global Head of Commercial Real Estate for Lone Star.
“This portfolio highlights Lone Star’s willingness and ability to develop strong and promising businesses serving not only our investors but also Japanese consumers with improved products and services,” added Mitsuo Matsunaga, head of Lone Star in Japan.
Lone Star’s investment platform in Japan has been actively investing in the country for over 28 years. Over that period, Lone Star has committed $9.6 billion in equity capital to assets in the region across nearly 90 investments, making it one of the most active investors in the region.
About Lone Star
Lone Star is a leading private equity firm advising funds that invest globally in corporate equity, credit, real estate and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 25 private equity funds with aggregate capital commitments totaling approximately $95 billion. The firm organizes its funds in three series: the Opportunity Fund series; the Commercial Real Estate Fund series; and the U.S. Residential Mortgage Fund series. Lone Star invests on behalf of its limited partners, which include institutional investors such as pension funds and sovereign wealth funds, as well as foundations and endowments that support medical research, higher education, and other philanthropic causes. For more information regarding Lone Star Funds, go to www.lonestarfunds.com.
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