Taiwanese investment firm APLUS will invest about 40 billion won ($29 million) in a Tokyo Roppongi residential asset held under MODO, the Japan housing platform of IGIS Asset Management. The structure — in which Taiwanese capital flows into Japan through a Korean asset manager's platform — is being read as a sign that IGIS Asset Management's investment capabilities are gaining recognition overseas.
APLUS joined as an equity investor in the Roppongi residential asset, whose acquisition was completed last month, according to investment banking sources cited on the 12th. It committed 40 billion won of the roughly 80 billion won ($58 million) in total investment.
The Roppongi residential asset, completed in 2013, is a 14-story building with 37 units. MODO oversaw the entire project, from asset sourcing and structuring to setting and executing the operating strategy. MODO is an investment and operating platform that IGIS Asia, the Asian investment arm of IGIS Asset Management, established in Japan.
APLUS decided to invest after viewing MODO's operating capabilities favorably, sources said. The firm has previously invested by partnering with local operating platforms in Tokyo, Osaka and Sapporo. Because it participates in operations and management rather than making simple investments, APLUS is known as an investor that places particular weight on operating capabilities. The firm concluded that urbanization and greater population mobility are blurring the line between the residential and hotel industries, and decided to work with MODO to expand its share of residential investment in Japan.
MODO plans to reposition the residential asset over 10 months and begin operations in the second quarter of next year. The product combines premium rental housing with flexible living. Drawing on the generous average dedicated floor area of 60 square meters, it aims to target tenants ranging from one- and two-person professional households to families of expatriate staff and corporate housing demand from global companies.
IGIS Asia, through MODO, chose Roppongi as an investment destination because of its high rents. With multinational corporations, embassies and international schools clustered there, leasing demand centered on global professionals and expatriate families runs deep. According to property market analysis firm PMA, residential rents in Roppongi are about 48% higher than the average in central Tokyo. A large-scale mixed-use redevelopment nearby, dubbed the "second Roppongi Hills," is also a favorable factor for medium- to long-term asset value appreciation.
MODO also receives active support from IGIS Asia. Established in 2020, IGIS Asia is an independent asset manager formally licensed by the Monetary Authority of Singapore (MAS). It is structured to raise funds directly, set up funds and carry out investment and management itself. IGIS Asia established MODO, backs it with anchor investment, and oversees the platform's investments as a whole.
"This capital raising is the result of an external institutional investor validating MODO's business strategy and execution capabilities," an IGIS Asset Management official said. "We will accumulate operating data from the Roppongi asset to use as the basis for follow-on investments, and expand a model proven in Japan to major cities across Asia."
