Lone Star Funds completed the sale of Tokyo β, a substantial rental property portfolio in Tokyo, on April 2, 2025, according to a press release issued by the firm.
The portfolio, comprised of over 16,000 rentable rooms, was formed following Lone Star’s acquisition of more than one thousand non-performing loans in Japan between early 2020 and late 2022. The firm subsequently restructured the management of nearly 1,200 shared houses, consolidating over 200 individual property managers onto a single platform catering to young professionals and students.
Recent improvements to the properties included a smartphone rental app, streamlined check-in and check-out processes, energy-efficient utilities and fixtures, and the provision of commuter electric scooters, designed to attract a new generation of renters. “Today’s announcement is the culmination of several years of function to successfully restructure and revitalize this portfolio, making it one of the most attractive rental communities in Tokyo,” said Jérôme Foulon, Global Head of Commercial Real Estate for Lone Star.
Mitsuo Matsunaga, head of Lone Star in Japan, added that the portfolio “highlights Lone Star’s willingness and ability to develop strong and promising businesses serving not only our investors but as well Japanese consumers with improved products and services.”
Lone Star Funds has been actively investing in Japan for over 28 years. The sale of Tokyo β marks an exit from the Tokyo rental market for the firm, which had initially acquired the underlying assets as non-performing loans.
