Tokyo establishes four affordable housing investment funds

Tokyo has formally selected the operators of Japan’s first public–private partnership funds dedicated to affordable housing, launching four new vehicles designed to ease housing pressures on families with children. Tenant recruitment by the fund managers is expected to begin as early as May.

Photo by Yu Kato on Unsplash.

The Tokyo Metropolitan Government has made expanding affordable housing - rental homes offered below market rates - a central part of its strategy to improve living conditions for households raising children. The initiative comes as rising rents and home prices continue to strain younger families, particularly those seeking larger units within commuting distance of central Tokyo.

To support the program, the metropolitan government committed ¥10 billion in seed capital. Combined with private sector investment, the funds are expected to reach a total scale of roughly ¥20 billion.

Tokyo began soliciting fund managers in June 2025 and shortlisted four consortium candidates that November. Following detailed consultations, the city has now finalized the appointments.

The four newly established funds

1. Tokyo Neubono Fund Investment Limited Partnership (Operators: SMBC Trust Bank Ltd.; Mantomi Co., Ltd.) 

   
   

2. Nomura Real Estate Affordable Housing Investment Limited Partnership (Operators: Nomura Real Estate Co., Ltd.; Nomura Real Estate Investment Advisors Co., Ltd.; Co-investor: Keio Corporation)

3. Tokyo Abandoned Home Revitalization Rental Affordable Housing Fund Investment Limited Partnership (Operators: Yamori Co., Ltd.; Mitsubishi UFJ Trust and Banking Corporation)

4. LiveQuality TOKYO Affordable Housing Supply Investment Limited Partnership (Operators: LiveEQuality Oyasan Co., Ltd.; Resona Real Estate Investment Advisors Co., Ltd.; Max Realty Co., Ltd.)

Together, the four funds are expected to supply approximately 550 rental units.

Fund strategies and scale

Fund (1)

Size: At least ¥4 billion (including ¥2 billion from Tokyo)

Term: 15 years

The fund will acquire newly built condominiums and supply roughly 70 rental units. About 60 units will be designated as affordable housing, targeting households with young children or expectant families.

Fund (2)

Size: At least ¥4 billion

Term: 10 years

Managers plan to acquire newly built and nearly new condominiums, supplying at least 120 rental units. Roughly 60 units will be reserved for child-rearing households with annual incomes of ¥8 million or less.

Fund (3)

Size: At least ¥4 billion

Term: 10 years

The vehicle will convert existing single-family homes into rental properties, supplying approximately 160 units aimed at families with children.

Fund (4)

Size: At least ¥8 billion (including ¥4 billion from Tokyo)

Term: 10 years

The fund will acquire both existing and newly built condominiums, supplying around 200 rental units. About 70 units will target child-rearing households with annual incomes of ¥6 million or less.

Rents across all four funds are expected to be set at roughly 75% to 80% of prevailing market rates, according to the Tokyo Metropolitan Government.

Source:

R.E. Port News (Japanese only)