CapitaLand Ascott REIT signs asset management deal for three Japan properties

The properties are Splendide Namba West, Pregio Esaka South, and Pre De Court Nishikyogoku.

CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management have announced that Amethyst Residence TMK, a wholly owned subsidiary of CapitaLand Ascott REIT, has entered an asset management agreement with CapitaLand Japan Kabushiki Kaisha.

The agreement covers three rental properties in Japan—Splendide Namba West, Pregio Esaka South, and Pre De Court Nishikyogoku.

Under the AMA, CJKK will manage these properties from 27 August 2025 until 30 September 2035.

AR TMK will pay CJKK 3% of net operating income as the management fee, estimated at $0.4m (JPY 46.5m).

According to the managers, the terms of the AMA are considered fair and below market rates, benefiting CLAS due to CJKK’s proven track record managing existing Japan assets.

CJKK, an associate of controlling shareholder CapitaLand Investment Limited, is considered an “interested person” under Singapore Exchange rules.

The transaction exceeds 3% of CLAS’ net tangible assets, requiring disclosure. The Audit and Risk Committee confirmed the terms are commercially fair and not prejudicial to CLAS or minority stapled securityholders.

The aggregate value of transactions between CLAS and the CLI Group for the current financial year is approximately $49.1m. Meanwhile, the total value of all interested person transactions involving CLAS during the same period is approximately $51.4m.

Key executives of the managers, including Serena Teo (CEO), Beh Siew Kim, and Yeo Chin Fu Ervin, hold positions within CLI but have no direct or indirect interest in the AMA beyond their CLAS stapled security holdings.