News
Warburg Pincus Acquires Tokyo Beta, One of Japan’s Largest Rental Housing Portfolios with Over 16,000 Rooms Apr 1, 2025
This Marks Warburg Pincus’ First Investment in Japan’s Living Sector to Capture Growing Demand for Affordable Rental Housing
- Tokyo Beta is well-positioned to meet the growing demand for affordable and quality rental housing, fueled by the increasing number of domestic and international young workforce and students seeking better opportunities in Tokyo.
- This marks Warburg Pincus’ first investment in the rental housing sector in Japan and its first investment in the country since the appointment of Takashi Murata as Head of Japan in 2024.
- The transaction cements the firm’s position as a leading investor in Asia’s rental housing sector.
Tokyo, April 2, 2025 – Warburg Pincus, the pioneer of private equity global growth investing, today announced that, through the Warburg Pincus Asia Real Estate Fund (“WPARE”), it has acquired the Tokyo Beta portfolio (“Tokyo Beta”), the largest share house1 portfolio in Japan. With 1,195 assets and 16,192 rooms, the portfolio accounts for more than half of the share house market in Tokyo, catering to the growing demand for quality and affordable rental housing amid the influx of domestic and international young workforce and students seeking better opportunities in the city.
Tokyo Beta offers a unique quality, convenient, and affordable rental housing option in Tokyo. The portfolio primarily consists of two-story, wooden-structured detached houses, with shared spaces, such as kitchens and bathrooms. The majority of the properties are strategically located near public transportation, providing easy access to major business hubs and educational institutions in Tokyo.
As one of the largest and most active investors in Asia’s real estate and for-rent living sectors, Warburg Pincus has partnered with best-in-class local operators, building significant depth in the for-rent living sector. Upon completion, its managed portfolio will encompass over 150,000 rooms across multiple platforms and ventures in the Asia Pacific region, including Weave Living, a living sector specialist focused on the gateway cities in Asia-Pacific; and ventures and partnerships with Vlinker focusing on affordable rental housing in China; SK D&D focusing on senior housing in South Korea; and KIO focusing on the living sector in Australia.
Takashi Murata, Managing Director, Co-Head of Asia Real Estate and Head of Japan at Warburg Pincus, said, “We have built a strong conviction in Tokyo’s affordable rental housing market, which is underpinned by several secular tailwinds. In the coming decade, the population in Tokyo is projected to continue to grow, driven by the influx of domestic and international young workforce and students, creating significant demand for affordable rental accommodation options. Limited housing supply has been pushing residential rental rates up by 5% per annum over the last three years, while occupancy rates are at a record high of over 97%, highlighting the structural demand and supply gaps in Tokyo.”
He added, “By leveraging our deep platform-building experience and operational expertise in the rental housing space across Asia-Pacific, we firmly believe there are significant opportunities to further unlock Tokyo Beta’s value through operational optimization and institutionalizing this residential sub-sector. Tokyo Beta is poised to meet the increasing demand for reliable and affordable rental accommodation in the coming decade.”
The portfolio of assets will continue to operate under the Tokyo Beta brand. Tosei Asset Advisors, a leading real estate asset manager in Japan, has been entrusted to manage the portfolio.
Seiichiro Yamaguchi, CEO of Tosei Group, said, “We are pleased to partner with Warburg Pincus on its inaugural rental housing investment in Japan. Tosei Asset Advisors has built a strong track record of managing real estate funds with over 2.4 trillion yen in AUM across a diverse range of assets, serving both domestic and international investors. We look forward to working closely with Warburg Pincus and leveraging our experience and expertise in the living sector to contribute to the continued success of Tokyo Beta.”
1. A "share house" (シェアハウス) in Japan refers to a co-living space where multiple tenants share common facilities such as the kitchen, living room, and bathrooms while having their own private rooms.
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About Warburg Pincus
Warburg Pincus LLC is the pioneer of private equity global growth investing. A private partnership since 1966, the firm has the flexibility and experience to focus on helping investors and management teams achieve enduring success across market cycles. Today, the firm has more than $87 billion in assets under management, and more than 220 companies in their active portfolio, diversified across stages, sectors, and geographies. Warburg Pincus has invested in more than 1,000 companies across its private equity, real estate, and capital solutions strategies.
Warburg Pincus began investing in Asia real estate in 2005. Today, it has become one of the largest and most active investors in the region, with over US$9 billion invested in more than 50 real estate platforms and ventures. The firm is a pioneer of platform investing and has co-founded or sponsored leading platforms alongside best-in-class entrepreneurs such as ESR, DNE, Vincom Retail, BW Industrial, Princeton Digital Group, Weave Living and StorHub.
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Lisa Liang | Senior Vice President, Head of Marketing and Communications, Asia