MODO, IGIS Asia’s Japan-focused urban residential investment and operating platform, has launched its first project through the acquisition of a residential asset in Roppongi, Tokyo, alongside APLUS Property Investment Holdings.

MODO was established in May last year as a joint venture between IGIS Asia and a Japanese partner to serve as its residential investment and operating platform in Japan. For this transaction, MODO led the deal sourcing and the development and execution of the asset’s operating strategy on the ground in Japan, while IGIS Asia and APLUS participated as equity investors.

Completed in 2013, the 14-storey rental property comprises 37 units with an average net floor area of approximately 60 square metres. It is located around a five-minute walk from both Roppongi and Azabu-juban stations. Tokyo Tower, Azabudai Hills and Roppongi Hills are nearby, while the surrounding area is home to multinational companies, embassies and international schools, making it one of central Tokyo’s key residential districts.

Following the acquisition, MODO plans to reposition the asset over approximately 10 months as MODO Roppongi, comprising premium rental residences and a flexible-living component. The programme will include redesigned unit layouts and interiors, upgraded common areas, flexible lease terms and professional operating services. Operations are scheduled to commence in the second quarter of 2027.

The investment is significant for securing an asset in a prime Roppongi location, where demand for professionally managed rental housing continues to grow. It also marks the first transaction in which MODO, IGIS Asia’s first residential platform in Japan, has directly managed the entire process—from deal sourcing and investment through to operations—without relying on third-party asset managers or operators.

A Prime Roppongi Location with International Demand

Roppongi is one of central Tokyo’s leading residential districts, supported by stable demand from global professionals, corporate executives and international families. Major business and commercial destinations sit alongside established residential neighbourhoods, while multinational companies, embassies and international schools are concentrated throughout the area.

According to data from property market research firm PMA, residential rents in Roppongi are approximately 48% above the central Tokyo average. A large-scale Roppongi 5-Chome Project, often described as the “second Roppongi Hills”, is also planned near the asset. The project is expected to further strengthen Roppongi’s international profile and its residential, business and commercial infrastructure, supporting the asset’s long-term locational competitiveness and value.

The property is approximately a five-minute walk from both Roppongi and Azabu-juban stations. Its units average approximately 60 square metres, offering more generous living space than is typically available in central Tokyo rental housing.

Based on these location and asset characteristics, MODO is targeting Japanese and international professionals, high-income single- and two-person households, corporate leasing demand from global companies, and expatriate families.

Repositioning Across Space and Operations

The repositioning of MODO Roppongi is designed to move beyond the standardised unit configurations commonly found in central Tokyo rental housing. The programme will reflect residents’ daily routines and practical living requirements across both the physical space and operating model.

Unit layouts and interiors will be upgraded to create premium furnished residences, complemented by flexible accommodation options ranging from short- to long-term leases and a professionally managed service offering.

MODO is working with Keiji Ashizawa Design, one of Japan’s leading architecture and design studios, on the spatial design and planning of the property. KAD has been involved since the early stages of the investment review, helping to develop a configuration aligned with MODO’s operating strategy. A dedicated residents’ lounge will also be introduced to support both work and relaxation.

MODO’s senior operating team comprises specialists with extensive experience across luxury rental housing, flexible living and hospitality. The team includes a former representative director of a JR East Residential Service, with more than 20 years of experience serving international and corporate residents and overseeing premium rental housing projects in Tokyo, including Takanawa Gateway Residence and Oimachi Tracks Residence.

It also includes an operating specialist with approximately a decade of experience at Pan-Asia flexible-living operator Dash Living, where she helped scale the portfolio from 5 properties to more than 20 while driving high occupancy and stable revenue performance. It also includes the founder of capsule hotel brand 9h nine hours, who has more than 17 years of hospitality experience and led the brand’s growth from its early stages to a network of more than 29 locations.

Drawing on their understanding of the lifestyles and residential needs of MODO Roppongi’s target residents, the team plans to deliver a differentiated service proposition supported by a carefully designed operating strategy.

One Platform, from Investment to Operations

For this transaction, MODO led the process from opportunity sourcing and investment analysis through to the development of the repositioning and operating strategies.

As MODO’s sponsor, IGIS Asia oversees the platform’s investment activities and is responsible for deal sourcing, transaction structuring and investment execution in Japan, as well as the development and professional operation of premium branded rental housing.

From the asset review stage, IGIS Asia worked closely with local partners to assess the asset’s repositioning and operating strategies for its target customer base. This helped secure APLUS’s participation and was a key factor in completing the transaction.

IGIS Asia believes that this platform-led approach can provide global investors with a differentiated investment solution in Japan’s residential market, which is facing its first sustained increase in interest rates in decades alongside rising development and operating costs.

Residential demand remains resilient. However, higher funding costs and a changing investment environment are increasing the need for active value-creation strategies beyond a traditional buy-and-hold approach.

MODO was established to pursue this more active and integrated approach to residential investment in Japan. The strategy and investment pipeline developed by its founding team helped secure approximately USD 28 million in equity investment from APLUS for the transaction.

Partnerships Strengthening Platform Execution

This investment marks the first collaboration between MODO and APLUS.

APLUS has completed multiple investments across major Japanese cities, including Tokyo, Osaka and Sapporo, in partnership with local operating platforms. APLUS brought to the transaction the market intelligence, investment expertise, local network and execution capabilities developed through that experience.

APLUS has also successfully managed and exited investments by working with specialist operating platforms, giving it a strong understanding of the importance of local operating capability and asset-level resilience.

Its participation reflects both its confidence in the platform strategy developed by IGIS Asia and MODO and its strategic objective of increasing exposure to Japan’s residential sector.

Transaction structuring and execution in Japan were undertaken in collaboration with Tokyo-based Crosspath Advisors. Following the acquisition, Crosspath Advisors will serve as the local asset manager, supporting the implementation of MODO’s repositioning and operating strategies.

MODO’s Vision for a Japan Residential Platform

The partners highlighted the structural opportunities in Japan’s residential market, the importance of local operating capabilities and the potential to expand MODO as a long-term investment platform.

Steve Oh, Chief Executive Officer of IGIS Asia, said:

“Japan is a strategically important market for global investors, supported by the strong economic foundations of its major cities and resilient residential demand. At the same time, the investment environment is evolving, increasing the importance of active value-enhancement strategies and committed local operating capabilities.

“Through MODO, we aim to provide institutional investors with a long-term solution for accessing Japan’s residential market through an integrated investment and operating platform.”

Min H. Lim, Head of Global Platform Investment at IGIS Asset Management, said:

“MODO Roppongi is ideally located to launch MODO’s investment and operating strategy. In addition to its locational strengths, the asset offers clear potential to improve both asset value and net operating income through active value-add initiatives and enhanced operating efficiency.

“MODO’s objective is to provide global institutional investors with access to high-quality opportunities in professionally managed, flexible urban rental housing, where a gap remains between supply and demand in Tokyo. By building a consistent operating track record, we aim to scale the portfolio across Japan and potentially into selected Asian markets over time.

“The operating insights, performance data and experience generated through the operation of MODO Roppongi will also support the underwriting of future investment opportunities and more proactive risk management, strengthening underwriting discipline and execution across the platform.”

Harvey Fang, Managing Partner of APLUS Property Investment Holdings, said:

“This investment reflects APLUS’s strategy of investing in Japan’s residential and hospitality sectors alongside experienced local partners with specialist operating platforms.

“We are focused on markets where urbanisation, greater global mobility and the convergence of residential and hospitality are creating opportunities for long-term value creation. We look forward to expanding our partnership with MODO in Japan’s residential sector following this initial collaboration.”

Written by Soyeong Park, Brand Communications Manager

Content Advisory and Review, GPI2 Team

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