Warburg Pincus acquires share house portfolio "TOKYO β" and Tosei subsidiary TAA takes over asset management April 14, 2025

Tosei Asset Advisors (TAA), a wholly owned subsidiary of Tosei Corporation, has been entrusted with asset management for TOKYO β, a share house portfolio acquired by global private equity investment firm Warburg Pincus, effective April 1, 2024. For Warburg Pincus, this is their first investment in the Japanese rental housing market and is positioned as an important stepping stone in their Asia strategy.

Tokyo Beta is a revitalization project that started with the properties of the Pumpkin Carriage, a shared house business that went bankrupt due to a fraudulent loan issue. Hudson Japan Co., Ltd., a subsidiary of the American investment fund Lone Star Group, acquired these vacant properties in bulk. Rather than renovating and reselling, they began restructuring the business with the aim of generating rental revenue through long-term ownership.

In 2022, Fukuoka-based Miyoshi Real Estate Co., Ltd. joined the operation side of things and restructured the property management and tenant recruitment system. This process led to the birth of the current brand, "TOKYO β." Targeting young people, foreign workers, and international students, the property features flexible contract terms with no deposit or key money required, furniture and appliances included, and no restrictions on gender or nationality. It has attracted attention as a new rental housing model that meets the rapidly growing need for "temporary housing" in urban areas.

Currently, the portfolio consists of 1,195 buildings with over 16,000 rooms located in central Tokyo and its suburbs, the majority of which are "shared apartments" renovated from two-story wooden houses. Each property has a shared kitchen and bathroom facilities, and is conveniently located near Tokyo's major business districts and universities.

TAA has a track record of managing a wide range of asset types, including residential, office, logistics, and commercial facilities, with an asset management balance (AUM) of over 2.4 trillion yen. With this latest entrustment, TAA is poised to contribute to further improving Tokyo Beta's asset value and management performance.

In its medium-term management plan "Further Evolution 2026," the Tosei Group has set a goal of achieving AUM of 3 trillion yen by the fiscal year ending November 2026, and this transaction can be seen as a strategic move towards achieving that goal. Going forward, the Tosei Group will continue to meet the needs of domestic and international investors, and will further expand its real estate fund and consulting business by improving operational efficiency through the use of digital transformation and acquiring new contracts.