Integral Real Estate Fund I (“IREF I”), managed by Integral Real Estate Corporation (“IRE”) has been actively investing in Kyushu, positioning it as a focus area. As part of this strategy, we are pleased to announce that IREF I has completed the acquisition of two properties and the signing of sales and purchase agreements for two properties located in Fukuoka City.
Continuous Investments in the Kyushu Area Centered on Fukuoka City
Major cities in Kyushu, particularly Fukuoka City, have a strong residential rental market backed by a high household growth rate and a young working population. Furthermore, due to their relative proximity to various Asian countries, they hold future potential as bases for tourism and business. Backed by strong fundamentals, the area has attracted attention from a wide range of domestic and international investors, and IREF I has continuously executed value-add investments. The cumulative investment amount in the target area currently accounts for just under 20% of the total investment of IREF I.
Acquired Properties
The acquired properties are one hotel and one residential property in Fukuoka City, Fukuoka Prefecture.
For the hotel located in Hakata Ward, the signing of the sales and purchase agreement was announced on March 28, 2025, and the transaction has been completed upon the completion of the building. The hotel has a total of 45 keys and features excellent transportation convenience, being a 9-minute walk to Hakata Station, 13 minutes to Fukuoka Airport, and 17 minutes to the Tenjin area. It is a rare property in Fukuoka City, where there is a shortage of accommodation facilities for large groups. Securing a spacious area of about 30 to 50 square meters per key, all guest rooms are fully equipped with kitchens, washing machines, and other amenities. This makes it a facility that meets the long-term stay needs of domestic and international families and group travelers.
The residential property located in Chuo Ward is in a location with excellent transportation convenience, a 4-minute walk to Yakuin Station, and a 6-minute subway ride from Yakuin Station to Hakata Station. Consisting of a total of 36 units ranging from single to family types, it caters to a wide range of tenant needs. The current rent is at a discount to the market rent, and we plan to carry out proactive value-add construction, such as full renovation of tenant space and cosmetic improvements of common areas, in conjunction with tenant turnover. We aim to maximize the property value by upgrading the facilities and designs to meet modern needs.
Properties with Signed Sales and Purchase Agreements
The properties for which sales and purchase agreements have been signed are two newer hotels in Fukuoka City, Fukuoka Prefecture.
Both properties are located in highly convenient areas, within a 7-minute walk from Hakata Station and Gofukumachi Station, respectively, and are scheduled for completion in the summer and autumn of 2027. Both are being developed as accommodation facilities for large groups of 4 or more people per key, with guest rooms equipped with kitchens and washing machines, catering to the long-term stay needs of domestic and international group travelers and inbound tourists. We plan to acquire these properties through forward commitment contracts, conditional upon delivery at the time of the buildings’ completion. Together with the hotel in Hakata Ward, we intend to capture the growth of the Fukuoka market, where inbound demand remains solid.
Future Outlook
While building strong relationships of trust with our stakeholders, IRE will continue to focus on discovering and creating investment opportunities across diverse asset types, and strategically continue investing in major cities nationwide with potential growth, mainly in the Tokyo metropolitan area.
