In collaboration with Tishman Speyer and Tokyo-based Alyssa Partners, Frasers Hospitality is venturing into Asia’s rental residential sector through joint ventures in China and Japan. These ventures involve a total investment of S$170 million ($126.4 million) in build-to-rent homes.
These deals will provide Frasers Hospitality, a hotel and serviced residence operator, with a portfolio of 449 rental units as it joins other institutional investors capitalizing on the growth of rental housing markets in Asia’s two largest economies.
Frasers Hospitality CEO Eu Chin Fen said, “Long-stay lodging assets have become increasingly resilient and attractive as an asset class.” He further expressed enthusiasm for long-term partnerships with their established joint venture partners, who have chosen to collaborate with Frasers Hospitality to leverage their integrated investment model and operational expertise to enhance their investments.
Frasers stated that the acquisitions in Shenzhen and Osaka would complement their existing portfolio and enable them to seize opportunities in long-term rental properties. In Shenzhen, where Frasers already operates a serviced apartment location, they have formed a joint venture with Tishman Speyer to acquire a 325-unit set of rental apartments in the Luohu commercial district. This property, part of the Shennan 1001 mixed-use development, is scheduled to open in the fourth quarter of 2024 after renovation.
Regarding the partnership, Wilson Chen, CEO of Tishman Speyer China, highlighted that “Shenzhen has become a technology and financial hub that continues to attract new businesses and residents, making it one of China’s most sought-after cities for rental apartments.” He also emphasized that their investment in Shennan 1001’s rental apartment component is an ideal first step for their long-term partnership.
In Osaka, Frasers Hospitality has joined forces with Alyssa Partners to acquire a 124-unit rental apartment in the Namba precinct, within walking distance of the nearest subway station. The property is currently operational and near full occupancy.
These acquisitions add to Frasers Hospitality’s expanding portfolio in North Asia, which consists of nearly 3,400 units across 16 properties in China, Japan, and South Korea. With an agreement to manage a property in Chengdu under their Modena brand and plans to open 11 more properties across North Asia in the next three years, Frasers Hospitality sees North Asia as an important market for their growth.
The collaboration with Frasers is the latest move by Tishman Speyer, a Manhattan-based firm in China. Tishman Speyer has been active in the country, including developing The Springs Center in Shanghai’s Yangpu district. Additionally, Alyssa Partners, a regional investment manager based in Japan, has been actively involved in the Japanese real estate market, partnering with global fund managers and acquiring multi-family assets across major cities.
The expansion into Asia’s rental residential sector reflects the growing interest of institutional investors in the region’s rental housing markets, as they recognize the resilience and attractiveness of long-stay lodging assets.
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