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# ~ Meeting the growing demand for affordable rental housing ~

- TOKYO β will meet the housing needs of the growing number of young workers and students both in Japan and overseas, providing convenient, high-quality, and affordable rental housing.
- With this transaction, Warburg Pincus' first in the Japanese rental housing market, further strengthens its position as a leading investor in the Asia-Pacific rental housing market.

TOKYO, April 7, 2025 /PRNewswire/ -- Warburg Pincus ("WP"), a leading global private equity fund specializing in growth investments, today announced the completion of the acquisition of "TOKYO β," one of Japan's largest share house portfolios, through its Warburg Pincus Asia Real Estate Fund (WPARE). The portfolio, consisting of 1,195 buildings and over 16,000 rooms, is primarily located in Tokyo and meets the growing market demand for high-quality, affordable rental housing for young workers and students, both from within Japan and overseas.

# TOKYO β Features

Located in an area with good access to the city center, TOKYO β offers a functional living environment at an affordable price. All properties consist of two-story wooden detached houses with shared spaces such as kitchens and bathrooms. With excellent access to Tokyo's business districts and educational institutions, this flexible rental housing model is suitable for young single households and foreign residents.

# Warburg Pincus ' residential investment track record in the Asia-Pacific region

Warburg Pincus is a leading investor in the Asia-Pacific real estate and rental housing market, working with the region's leading operators and building a track record of managing over 150,000 units (based on completed construction). The firm invests in a variety of platforms and ventures in the region, including Weave Living, which specializes in residential properties in Asia-Pacific gateway cities; a joint venture with Vlinker, a leading affordable rental housing company in China; SK D&D, which specializes in senior housing in Korea; and KIO, which focuses on residential properties in Australia.

# Warburg Pincus's comment

Takashi Murata, Managing Director, Co-Head of Asia Real Estate and Head of Japan at Warburg Pincus, said:

"Tokyo's affordable rental housing market is experiencing very strong long-term tailwinds. Over the next decade, we expect a continued influx of young people from both Japan and overseas, further increasing housing demand. Despite limited new housing supply, rents have risen by an average of nearly 5% per year over the past three years, and occupancy rates have remained at a record high of over 97%, highlighting the structural supply-demand gap in Tokyo's housing market.

"We will also leverage Warburg Pincus' expertise in building rental housing platforms in the Asia-Pacific region to enhance TOKYO β's operations and further institutionalize this market, thereby increasing asset value. We believe that demand for reliable, affordable housing will continue to grow, and TOKYO β will be the ideal platform to capture this market opportunity."

# Management Structure

TOKYO β properties will continue to be operated under the same brand and will be managed by Tosei Asset Advisors, one of Japan's leading real estate asset management companies.

Seiichiro Yamaguchi, CEO of Tosei Group, said:

"We are very pleased to partner with Warburg Pincus on their first investment in Japan's rental housing market. Tosei Asset Advisors has a wealth of experience, having been entrusted with asset management for real estate funds worth over 2.4 trillion yen from both domestic and international investors. We look forward to contributing to the further growth of TOKYO β by leveraging our close collaboration with Warburg Pincus and our Group's expertise in the rental housing market."

[1] A share house is a property where each resident has their own private room but shares the kitchen, living room, toilet, bathroom, etc.

# About Warburg Pincus

Warburg Pincus (WP) is a leading global private equity firm focused on growth investing. Since 1966, it has partnered with investors and management teams to ensure their long-term success. It currently manages over $87 billion in assets and has a portfolio of over 220 companies across growth stages, sectors, and geographies. It has invested in over 1,000 companies across PE, real estate, and capital solutions.

Since starting its real estate investments in the Asia-Pacific region in 2005, WP has invested over $9 billion in over 50 real estate platforms and venture companies, growing into one of the largest funds accelerating active investment in the region. As a pioneer in platform investment, the firm has supported the growth of renowned companies such as ESR, DNE, Vincom Retail, BW Industrial, Princeton Digital Group, Weave Living, and Storehub Group through co-founding and funding of major platforms.

# Media Inquiries:

Lisa Liang | Senior Vice President and Head of Marketing and Communications, Asia
lisa.liang@warburgpincus.com

(Japanese release: provided by client)

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