News, Events and Media

    1. 2014-05-08

      Kenedix Office REIT raises JPY 10.9 Billion, acquires 3 office properties

      J-Reits

      Kenedix Office REIT, a J-REIT sponsored by Kenedix, an independent developer/investment manager, and specialized mid-sized office properties, announced that they will raise JPY 10.9 billion and acquire three office properties for the aggregate purchase price of JPY 14.7 billion. Two of the three properties are located in metropolitan Tokyo and the other one is located in Utsunomiya-city in northern Kanto district. Before these acquisitions, The J-REIT has AUM of JPY 336 billion with 89 mostly mid-sized office properties.

      The sellers of these three properties are SPCs associated with Kenedix, the sponsor of the J-REIT.

      For further details;
      http://www.kdx-reit.com/eng/cms/whats/20140508_225506wZZN.pdf

    2. 2014-03-20

      Nippon REIT Investment will be newly listed in TSE in April

      J-Reits

      Sojitz, one of the major trading companies in Japan, announced that Nippon REIT Investment, a J-REIT sponsored by them, received approval from Tokyo Stock Exchange to list its investment units. They will be listed on April 24. This will be the second new listing of J-REITs since the beginning of this year.

      According to the research report prepared by ARES (Association of Real Estate Securitization), the J-REIT envisages raising JPY 38 billion by initial public offering and their initial AUM will be approximately JPY 70 billion comprised by 13 office properties (JPY 52.4 billion) and 7 residential properties (JPY 18 billion). All the office properties are located in the 23 wards district of metropolitan Tokyo whereas residential properties are located in Nagoya (4 properties), Sapporo, Fukuoka and Tokyo. The average NOI yield on appraisal basis is 5.0%, comprised by 4.8% (office properties) and 5.4% (residential properties).

    3. 2013-11-29

      Global One sells interest on a large office building to Angela Gordon

      J-Reits

      Global One, a J-REIT sponsored by Meiji Life and specialized in large office properties, announced that they will sell their 67% interest in “Sphere Tower Tennoz”, a large office property located in Tennoz Aisle in the Tokyo bay area adjacent to CBD, Tokyo for JPY 9.5 billion. The book value of the property is JPY 10.4 billion and expected loss would be JPY 1.3 billion including brokerage. The J-REIT has AUM of JPY 156.9 billion with a portfolio of 9 office properties before this disposal.

      The property, built in 1993, has 27 floors above ground and two below with gross floor area of 43, 478 sqm. Because a large tenant vacated in September of this year, current occupancy rate is only 46% with 22 tenants. Global One cites the rationale for the disposal as long rug time to improve occupancy. Thus, they believe disposing at this moment serves best interest for unit holders. Although the J-REIT did not disclose the identity of the purchaser, according to Nikkei Real Estate Market Report, it is believed to be an SPC associated with Angela Gordon.

      For further details:
      http://www.go-reit.co.jp/eng/cms/whats/20131129_1513089BTa.pdf

    4. 2013-11-28

      Heiwa Real Estate REIT raises JPY 6.3 Billion, acquires three properties

      J-Reits

      Heiwa Real Estate REIT, a J-REIT sponsored by Heiwa Real Estate, an independent developer, announced that they will raise JPY 6.3 billion by secondary offering and will acquire three office properties for the aggregate purchase price of JPY 9.5 billion. The J-REIT currently has AUM of JPY 138.2 billion with a portfolio of 69 office, residential and hotel properties.

      The largest of the three properties, “HF Sakura-dori Building”, built in 2009, has 13 floors above ground with gross floor area of 13,161 sqm. It is located in CBD Nagoya-city and within 3 minute walking distance from the nearby subway station. It is currently 96% occupied with 20 tenants. The subject of this acquisition is the building on the leased land. The purchase price is JPY 4.9 billion and assumed NOI yield is 6.1%.

      The seller of the three properties is Heiwa Real Estate, the sponsor of the J-REIT.

      For further details:
      http://www.heiwa-re.co.jp/site/file/tmp-8Jec7.pdf
      http://www.heiwa-re.co.jp/site/file/tmp-68hTE.pdf

    5. 2013-11-22

      Activia Properties raises JPY 34 Billion, acquires 6 properties

      J-Reits

      Activia Properties, a J-REIT sponsored by Tokyu Land, a major developer associated with Tokyu Railway, announced that they will raise JPY 34 billion by secondary offering and will acquire four commercial properties and two office properties for the aggregate purchase price of JPY 47.4 billion. The J-REIT currently has AUM of JPY 184 billion with a portfolio of 21 office and commercial properties.

      The largest of the six properties, “Kobe Kyu-kyoryuchi No. 25”, built in 2010, is a large retail/hotel complex in Kobe-city that has 18 floors above ground and three below with gross floor area of 27,010 sqm. It is located in the upscale commercial area in Kobe-city. Key tenant is Oriental Hotel who occupies 3rd to 17th floor. Other retail tenants include Luis Vuitton and Barneys New York. It is currently 100% occupied with 7 tenants. The purchase price is JPY 21.3 billion and assumed NOI yield is 4.8%. Another commercial property, “Tokyu Plaza Sapporo”, built in 1980, is a retail/hotel complex in Sapporo-city that has 12 floors above ground and one below with gross floor area of 27,227 sqm. It is located in the central commercial area of Sapporo-city. Key tenant is Sapporo Tokyu Inn, a mid-class business/tourist hotel with 575 guest rooms. It is currently 100% occupied with 18 tenants. The purchase price is JPY 4.4 billion and assumed NOI yield is 8.8%.

      The two other commercial properties are in Tokyo. “Kamata Kosan Building”, built in 1988, is in the most popular commercial area in Shibuya. It has 5 floors above ground and one below with gross floor area of 3,341 sqm. It is currently 100% occupied with 2 tenants. The purchase price is JPY 6.37 billion and assumed NOI yield is 5.0%. The other property, “J-core Omori”, built in 2007, is located in southern residential area of 23 wards district of Tokyo and within 3 minute walking distance from JR Omori station whereby commuter line to CBD is available. The property has 7 floors above ground and one below with gross floor area of 7,040 sqm. Key tenant is a fitness club who occupies 3rd to 7th floors. It is currently 100% occupied with 6 tenants. The purchase price is JPY 5.79 billion and assumed NOI yield is 5.3%.

      Two office properties are in Tokyo. “Gotanda Front”, built in 2012, is located within 3 minute walking distance from JR Gotanda station of Yamanote Line. The property has 10 floors above ground with one below with gross floor area of 5,782 sqm. It is currently 100% occupied with 11 tenants. The purchase price is JPY 5.73 billion and assumed NOI yield is 4.5%. The other office property, “Shinagawa Place”, built in 1991, is located near JR Shinagawa station where several commuter lines are connected and bullet train to western Japan is available. The property has 8 floors above ground and one below with gross floor area of 3,938 sqm. It is currently 100% occupied with 8 tenants. The purchase price is JPY 3.8 billion and assumed NOI yield is 4.7%.

      The sellers of the six properties are either the sponsor of the J-REIT or SPC’s associated with the sponsor or its affiliates.

      For further details:
      http://www.activia-reit.co.jp/site/file/tmp-pgUPa.pdf
      http://www.activia-reit.co.jp/site/file/tmp-4kbYn.pdf

    6. 2013-11-05

      Prologis REIT raises JPY 30 Billion, acquires 4 logistics properties

      J-Reits

      Proligis REIT, a J-REIT sponsored by Proligis, a global logistics facility developer, and specialized in logistics properties, announced that they will raise JPY 30 billion by secondary offering and acquires four logistics properties for the aggregate purchase price of JPY 54 billion. With regard to the secondary offering, they endeavors to raise JPY 21 billion in the domestic market and JPY 9 billion from overseas investors. The J-REIT currently has AUM of JPY305.5 billion with a portfolio of 20 logistics properties.

      The sellers of the four properties are SPCs associated with the sponsor of the J-REIT, Prologis.

      For further details;
      http://www.prologis-reit.co.jp/site/file/tmp-bRVgj.pdf
      http://www.prologis-reit.co.jp/site/file/tmp-Z2trw.pdf

    7. 2013-10-24

      Wealthy individuals in Asia aggressively invest in Tokyo residential properties

      J-Reits

      Nikkei Newspaper posted an article that states recovery in business condition in Japan, as well as relative JPY weakness, attract wealthy individuals in Asia investing in residential properties in Tokyo. According to the article, Singapore based John Lang LaSalle believes that investment in residential properties by foreign wealthy individuals would increase by 30% in 2014 compared to that in 2013. The most popular target is in the price range of JPY 80 to 100 million with 70 to 100 sqm units located in central Tokyo and developed by major developers such as Mitsui Fudosan and Mitsubishi Estate.

      The article quoted Ms. Doris Tang of John Lang LaSalle stating, “Although residential property price in Tokyo has been essentially flat in the past 20 years, people expect the price will rise 3 to 5 % a year in coming years. Such expectation attracts investor.

    8. 2013-10-24

      Kenedix REIT raises JPY 19.4 Billion, acquires 5 office properties in Tokyo

      J-Reits

      Kenedix REIT, a J-REIT sponsored by Kenedix and specialized mainly in mid-size office properties in Tokyo, announced that they will raise JPY 19.4 billion by secondary offering and will acquire 4 office properties in Tokyo for JPY 14.9 billion. The J-REIT currently has AUM of JPY 305 billion with a portfolio of 85 properties, mostly mid-size office properties in Tokyo.

      For further details;
      http://www.kdx-reit.com/eng/cms/whats/20131024_234951vwYq.pdf
      http://www.kdx-reit.com/eng/cms/whats/20131008_153611PEKJ.pdf

    9. 2013-10-17

      Aeon REIT raises JPY 94.5 billion by IPO, listed in TSE

      J-Reits

      Nikkei Newspaper reported that Tokyo Stock Exchange (TSE) has approved listing of Aeon REIT, a new J-REIT sponsored by AEON, one of the largest supermarket chain operators. The J-REIT plans to raise JPY 94.5 billion by initial public offering. They expect to be listed in November 22.

      The initial AUM of the J-REIT will be 16 domestic commercial properties and one Malaysian property whereby AEON engages shopping center operations. The aggregate appraisal value is approximately JPY 159 billion. The 16 domestic properties are located in all over Japan. The J-REIT will acquire AEON’s 18% interest in AEON Taman Universiti Shopping Center in Johor Bahru, Malaysia.

    10. 2013-10-15

      Orix J-REIT raises JPY 10.6 Billion, acquires five properties

      J-Reits

      Orix JREIT, a J-REIT sponsored by Orix Group, announced that they will raise JPY 10.6 billion by secondary offering and will acquire one office property, three commercial properties and one land parcel for the aggregate purchase price of JPY 20.2 billion. The J-REIT currently has AUM of JPY 383 billion with a diversified portfolio of 74 offices, commercial, residential and logistic properties.

      The office property, “MG Shiroganedai Building”, built in 1998, has 7 floors above ground and one below with gross floor area of 9,236 sqm. It is located in Shiroganedai, one of upscale residential areas in CBD Tokyo, and 6 minutes walk from nearby subway station. It is currently 100% occupied by three tenants. Acquisition price is JPY 8.5 billion and assumed NOI and NOI yield are JPY 395 million and 4.65%.

      Orix, the sponsor of the J-REIT, or their affiliates has equity interest in the sellers of the five properties.

      For further details;
      http://www.orixjreit.com/english/cms/whats/20131015_204146evRU.pdf

    11. 2013-09-30

      Japan Hotel REIT a hotel property in Kyoto

      J-Reits

      Japan Hotel REIT, a J-REIT specialized in hotel properties, announced that they will acquire a hotel property in Kyoto for JPY 6.6 billion. The J-REIT will have AUM of JPY 158.9 billion with a portfolio of 28 hotel properties.

      The property in Kyoto, “Ibis Styles Kyoto Station”, built in 2009, has gross floor area of 5,004 sqm, accommodating 215 unit guest rooms. It is a mid-class hotel located just one minute walk from JR Kyoto station. The hotel operator is AAPC Japan (Accor), who has operated Ibis Styles Shinjuku, another asset of the J-REIT, and improved revenues through their international network. The J-REIT expects similar revenue increase by attracting international tourists. The current NOI yield of the property is 5.6%.

      For further details;
      http://www.jhrth.co.jp/site/file/tmp-CNmgR.pdf

    12. 2013-09-30

      Nomura Master Fund acquires a commercial property in Tokyo for JPY 10.4 Billion

      J-Reits

      Nomura Master Fund, a J-REIT sponsored by Nomura Real Estate and specialized in commercial and logistics properties, announced that they will acquire a commercial property in metropolitan Tokyo for JPY 10.4 billion. The REIT currently has AUM of JPY 228 billion with a portfolio of 54 properties.

      The subject property, “Recipe Shimokita”, built in 2011, has 8 floors above ground and two below with gross floor area of 8,553 sqm. It is located in Shimokitazawa, just out of central 5 wards of metropolitan Tokyo. The property’s location is just one minute walk from the stations of commuter lines. The property is currently 99% occupied by 10 tenants. Assumed NOI and NOI yield are JPY 459 million and 4.4% respectively. The seller of the property is a third party.

      For further details;
      http://www.nre-mf.co.jp/site/file/tmp-wnxsc.pdf

    13. 2013-09-20

      Daiwa House Residential REIT acquires 6 properties in metropolitan Tokyo

      J-Reits

      Daiwa House Residential REIT, a J-REIT sponsored by Daiwa House, a major house builder, and specialized in residential properties, announced that they will acquire six properties in metropolitan Tokyo for the aggregate purchase price of JPY 10.3 billion. The acquisitions will be financed by up to JPY 7 billion borrowings and cash in hands. The J-REIT currently has AUM of JPY 221 billion with a portfolio of 127 residential properties.

      All of the 6 properties are located in southern metropolitan Tokyo and has good commuting access to anywhere in CBD Tokyo via commuter lines and subways. 6 properties in aggregate have gross floor area of 15,660 sqm and comprise 347 rental apartment units, mostly compact type for singles and dinks. All of them were built in between 2007 and 2008, except for one old property refurbished in 2007. Current occupancy rates are between 94% and 89%. The seller of the six properties is a third party.

      For further details;
      http://www.daiwahouse-resi-reit.co.jp/eng/cms/whats/20130920_154255n6vv.pdf

    14. 2013-09-13

      Japan Logistics Fund raises JPY 15 Billion, acquires interests in three properties

      J-Reits

      Japan Logistics Fund, a J-REIT sponsored by Mitsui & Co, Sumitomo Mitsui Trust Bank and Kenedix and specialized in logistics properties, announced that they will raise JPY 15 billion by secondary offering and will acquire interests in three logistics properties for JPY 19.2 billion. The J-REIT has AUM of JPY 174 billion with a portfolio of 33 logistics properties as of August of this year.

      One of the three properties is “Shinkoyasu Logistics Center”, located in the bay area of Yokohama-city and has good traffic access to anywhere in metropolitan Tokyo. The property, built in 2012, has four floors above ground with gross floor area of 60,207 sqm. It is for warehouse and office use. The J-REIT will acquire 51% interest for JPY 9.7 billion. It is currently 97% occupied with 3 tenants and assumed NOI yield is 5.3%.

      For further details;
      http://8967.jp/eng/finance/press_release/130913_03.pdf
      http://8967.jp/eng/finance/press_release/130913_02.pdf

    15. 2013-09-12

      Japan Retail Fund raises JPY 38.6 Billion, acquires eight properties

      J-Reits

      Japan Retail Fund, a J-REIT sponsored by Mitsubishi Corporation and UBS and specialized in commercial properties, announced that they will raise JPY 38.6 billion by secondary offering and will acquire eight commercial properties for the aggregate purchase price of JPY 73.7 billion. With regard to the proposed secondary offering, they plan to raise JPY 18 billion from domestic market and JPY 20.6 billion from overseas investors. The J-REIT has AUM of JPY 720 billion with a portfolio of 76 commercial properties as of July of this year.

      For further details;
      http://www.jrf-reit.com/upd/ir_news/pdf/1309121710321391.pdf
      http://www.jrf-reit.com/upd/ir_news/pdf/1309121700321388.pdf

    16. 2013-08-19

      Mori Hills REIT raises JPY 11.8 Billion, acquires interest in Roppongi Hills

      J-Reits

      Mori Hills REIT, a J-REIT sponsored by Mori Building Group, announced that they will raise JPY 11.8 billion by secondary offering and acquire 2.8% interest (sectional ownership) in Roppongi Hills Mori Tower for JPY 21.9 billion. Before this acquisition, the J-REIT has AUM of JPY 230.8 billion with portfolio of 9 offices, residential and commercial properties.

      Roppongi Hill is the landmark office/commercial/residential complex developed by Mori Building Group, completed in 2003. The subject acquisition corresponds to sectional ownership of 19th and 22nd floor of the property. The seller and 5-year master lessee is Mori Building, the sponsor of the J-REIT. Assumed NOI and NOI yield are JPY 881 million and 4.0%

      For further details;
      http://www.mori-hills-reit.co.jp/en/cms/press/en20130819_3.pdf
      http://www.mori-hills-reit.co.jp/en/cms/press/en20130819_4.pdf

    17. 2013-07-26

      Tokyu REIT raises JPY 13.9 billion, acquires 3 properties in Tokyo

      J-Reits

      Tokyu REIT, a J-REIT sponsored by Tokyu, a major railway company, and specialized in office and commercial properties in metropolitan Tokyo, announced that they will raise JPY 13.9 billion through a secondary offering and acquires one commercial property and two office properties in metropolitan Tokyo for aggregate purchase price of JPY 25.8 billion. The J-REIT currently has AUM of JPY 204.2 billion with a portfolio of 26 office and commercial properties.

      The subject commercial property, “Kareido Shibuya Miyamasuzaka”, built in 1992, has 6 floors above ground and 4 below with gross floor area of 4,475 sqm. It is located three minutes walk from JR Shibuya station. It is in the midst of Shibuya shopping area, one of the most popular in Tokyo. It is currently 100% occupied by 8 tenants, restaurants and amusement outlets. The purchase price is JPY 5.15 billion. Assumed NOI and NOI yield are JPY 267 million and 5.2% respectively.

      One of the office properties, “Shibuya R Sankei Building”, built in 1990, has 9 floors above ground and one below with gross floor area of 7,289 sqm. It is located two minutes walk from JR Shibuya station. It is currently 100% occupied by 12 tenants. The REIT will acquire a sectional ownership of the property. The purchase price is JPY 5.27 billion. Assumed NOI and NOI yield are JPY 268 million and 5.1% respectively. The other office property, “Tokyu Toranomon Building”, built in 2010, has 10 floors above ground with gross floor area of 11, 983 sqm. It is located in Toranomon, CBD Tokyo and within 3 minutes walk from nearby subway station. It is currently 100% occupied by 4 tenants. The purchase price is JPY 15 billion. Assumed NOI and NOI yield are JPY 600 million and 4.0% respectively.

      The seller of the last property is Tokyu, the sponsor of the J-REIT. The sellers of the other two properties are third parties.

    18. 2013-07-25

      Japan Logistics Fund acquires a logistic facility in suburban Tokyo

      J-Reits

      Japan Logistics Fund, a J-REIT sponsored by Mitsui & Company and specialized in logistics facilities, announced that they will acquire a logistic facility in Musashi Murayama city in suburban Tokyo for JPY 8.65 billion. The J-REIT currently has AUM of JPY 165 billion with a portfolio of 32 logistics facilities.

      The subject property, “Musashi Murayama Logistics Center”, built in 2003, has 4 floors above ground with gross floor area of 40,884 sqm. It is located western suburban Tokyo and has good access to metropolitan Tokyo. The property is occupied by one tenant. Assumed NOI and NOI yield are JPY 498 million and 5.8% respectively.

      According to Nikkei Real Estate Market Report, the seller is a private fund sponsored by an affiliate of Mitsui & Company, the sponsor of the J-REIT.

      Further details under:
      http://8967.jp/eng/finance/press_release/130725_04.pdf

    19. 2013-07-19

      Daiwa Office REIT acquires an office property in CBD Tokyo for JPY 9.2 Billion

      J-Reits

      Daiwa Office REIT, a J-REIT sponsored by Daiwa Securities and specialized in office properties, announced that they will acquire an office property in Akasaka, CBD Tokyo for JPY 9.2 billion. The J-REIT currently has AUM of JPY 336.6 billion with 42 office properties, mostly in metropolitan Tokyo.

      The property, “Akasaka Business Place”, built in 1990, has seven floors above ground and two below with gross floor area of 13,554 sqm. Akasaka is well known as office property location as well as commercial area. The property is located just 2 minutes walk from the nearest subway station. It is currently 89% occupied with 12 tenants. Assumed NOI and NOI yield (at 95% occupancy) is JPY 438 million and 4.8% respectively. According to Nikkei Real Estate Market Report, the seller is an SPC associated with Angela Gordon.

      Further details under:
      http://www.daiwa-office.co.jp/site/file/tmp-h6jpA.pdf

    20. 2013-07-17

      Kenedix Residential raises JPY 34.6 Billion, acquires 60 properties

      J-Reits

      Kenedix Residential, a J-REIT sponsored by Kenedix, an independent real estate developer/manager, and specialized in residential properties, announced that they will raise JPY 34.6 billion through a secondary offering and will acquire 60 residential properties for the total purchase price of JPY 68.6 billion. Before these acquisitions, the J-REIT had AUM of JPY 30.5 billion with portfolio of 20 residential properties.
      Of the 60 properties, 35 are located in metropolitan Tokyo and the other are spread around in Sapporo, Sendai, Nagoya, Kyoto, Hiroshima, Osaka, Kobe and Fukuoka. The size of the properties varies: The highest acquisition price is JPY 3 billion and the lowest price is JPY 440 million. Most of the properties were built in 2000s except for a few built in 1990s, and most of the properties have current occupancy of more than 90%. The sellers of the properties, except for one property, are associates of the sponsor, Kenedix.

    21. 2013-06-26

      Advance Residence acquires equity stake in 6 residential properties in Tokyo jointly with Sparx Group

      J-Reits

      Advance Residence, a J-REIT sponsored by Itochu, a major trading company, and specialized in residential properties, announced that they will invest in 10% equity stake in 6 residential properties for JPY 254 million. The J-REIT currently has AUM of JPY 368 billion with a portfolio of 190 properties.

      The total acquisition price of 6 properties is JPY 9.29 billion. It will be financed by JPY 2.54 billion equity injection and JPY 6.75 billion non-recourse loan. According to Nikkei Real Estate Market Report, co-investor who takes 90% stake is a fund managed by Sparx Group, an independent asset manager. With this investment, Advance Residence will have first negotiation rights when Sparx decide to sell the properties.

      The six residential properties are all located in CBD Tokyo or adjacent areas. They are all built in either 2007 or 2008, and their occupancy rates vary from 91% to 100%. In total, they are 338 rental apartment units. Average NOI yield is 5.4%.

      Further details under:
      http://www.adr-reit.com/file.html?path=24-11363-c010-5761051ca913668703&name=20130624.Notice_Concerning_Acquisition_of_Investment_Assets_final.pdf

    22. 2013-06-26

      JRE acquires an office property in Nagoya

      J-Reits

      Japan Real Estate (JRE), a J-REIT sponsored by Mitsubishi Estate and specialized in office properties, announced that they will acquire an office property in CBD Nagoya. The J-REIT currently has AUM of JPY 782 billion with a portfolio of 60 mostly office properties. The purchase price is JPY 8.6 billion. According to Nikkei Real Estate Market Report, the seller is an SPC associated with Tokyo Marine Group.

      The property, “Nagoya Hirokoji Place”, was built in 2004 and has gross floor area of 15,947 sqm. It is located in the midst of CBD Nagoya-city. It is currently 91% occupied with 22 tenants. Assumed NOI (at 95% occupancy) and NOI yield are JPY 503 million and 5.8%, respectively.

      Further details under:
      http://www.j-re.co.jp/english/cms/whats/20130628_172530LHJP.pdf

    23. 2013-06-14

      Nomura Office Fund raises JPY 35 billion, acquires 3 properties in Tokyo

      J-Reits

      Nomura Office Fund, a J-REIT sponsored by Nomura Real Estate and specialized in office properties, announced that they will raise JPY 35 billion by secondary offerings and will acquires three office properties in metropolitan Tokyo for the aggregate purchase price of JPY 10.8 billion. The remaining proceeds from secondary offerings will be applied to loan repayment. The REIT currently has AUM of JPY 372 billion with portfolio of 50 office properties before these three acquisitions.

      Three properties are as follows; “Ohtemachi Tatemono Gotanda Building”, built in 1986, has gross floor area of 8,510 sqm. It is located in one minute walk from JR Gotanda Station of Yamanote Line, the most popular commuter line in Tokyo. It is currently 91% occupied by 10 tenants. The purchase price is JPY 4.1 billion. (The subject property is ownership of building and right to lease land.) Assumed NOI (at 95.7% occupancy) is JPY 240 million and assumed NOI yield is 5.85%. “PMO Nihonbashi Ohdenmacho”, built in 2010, has gross floor area of 2,628 sqm. It is located in 2 to 6 minutes walk from nearby subway stations in downtown, CBD Tokyo. It is currently 89% occupied by 8 tenants. The purchase price is JPY 2.08 billion. Assumed NOI (at 96% occupancy) is JPY 104 million and assumed NOI yield is 5.0%. “NF Hongou Building”, built in 1989, has gross floor area of 6,124 sqm. It is located just outside of CBD, Tokyo, and 5 minute walk from nearby subway station. It is currently 100% occupied by one tenant. The purchase price is JPY 4.7 billion. Assumed NOI (at 100% occupancy) is JPY 327 million and assumed NOI yield is 7.0%.

    24. 2013-06-10

      ORIX JREIT acquires interest in shopping mall in suburban Sapporo-city

      J-Reits

      ORIX JREIT, a J-REIT sponsored by Orix Group, announced that they will acquire 17.8 % equity interest in a shopping mall in suburban Sapporo-city in Hokkaido. The J-REIT currently has AUM of JPY 383 billion with a portfolio of 73 offices, commercial, residential and industrial properties.

      The shopping mall, “Inter-village Ohmagari”, built in 2008, has gross floor area of 38,765 sqm. It was built on the 71,225 sqm land parcel. It is located just outside of Sapporo city border and near the expressway connected between CBD, Sapporo-city and Chitose International Airport. It is currently 99% occupied by 20 tenants including four key tenants, super-market, electric appliances retailer, home center and furniture retailer. The whole acquisition price of the mall is JPY 5.38 billion, financed by JPY 1.46 billion equity and JPY 3.92 non-recourse loan. The J-REIT will acquire 17.8% equity interest at JPY 260 million. Assumed NOI and NOI yield are JPY 376 million and 7.0%. The seller is Orix Real Estate, an affiliate of the sponsor.

      For further details, please see the following announcement:
      http://www.orixjreit.com/english/cms/whats/20130611_191659RRUH.pdf

    25. 2013-05-09

      Nomura Real Estate will launch a new JPY 220 billion REIT

      J-Reits

      According to Nikkei Real Estate Market, Nomura Real Estate will launch a new REIT specialized in commercial and logistic properties in June. They plan to have the initial AUM at approximately JPY 220 billion with portfolio of 54 properties, comprising JPY 120 billion logistic properties and JPY 100 billion commercial properties. More than 80% of the portfolio will be located in metropolitan Tokyo. The initial portfolio properties will be mainly acquired from the sponsor, Nomura Real Estate.

      The largest property to be acquired is “Landport Urayasu”, a logistic facility located in Urayasu-city in Tokyo bay area. It has gross rentable area of 72,000 sqm and fully leased to two tenants, Otsuka Soko, a major warehousing company, and Fukuyama Transporting, a major trucking company. The acquisition price will be JPY 17.4 billion.

      The largest commercial property to be acquired is “Morishia Tsudanuma”, a shopping mall in Narashino-city in suburban Tokyo. It is located in front of JR station in the popular commuter line. It has gross floor area of 42,000 sqm. The mall has 124 tenants, including Yamada Electric, the largest distributor of electric appliances, and Eon, a major super market chain operator. The acquisition price will be JPY 16.6 billion.

      Nomura Real Estate currently sponsors two REITs, one specialized in office and the other specialized in residential properties. This will be the third REIT. All of them are managed by Nomura Real Estate Investment Management, the wholly owned subsidiary of the sponsor. The investment management sub will have total AUM of over JPY 1 trillion including three REITs and other private funds.

    26. 2013-03-27

      J-REITs surpasses other stock markets by a wide range

      J-Reits

      The Tokyo Stock Exchange J-REIT index opened at 1.642 today. The index gained 70% over the past 12 months. The performance of J-REIT index has well surpassed other stock markets, like the Nikkei 225 gaining 24.49% over the past 12 month or the German DAX advancing11.38% over one year.

      Market participants cite three major factors behind this strong performance: The main driver for the J-REIT performance over the past two months is the expectation of Bank of Japan (BoJ) monetary easing under Abenomics. Mr. Haruhiko Kuroda, the incoming new governor of BOJ, suggested purchasing risk assets under the envisioned quantitative easing at his congressional testimony. On top of this direct impact of outright purchases, they expect aggressive monetary easing will bring stronger domestic economy, justify higher rents and higher real estate prices.

      The amount of public offering of J-REITs this year confirms markets’ perception on J-REITs. In just two months (January and February) at the beginning of this year, the total public offering announced by J-REITs amounted to JPY 309 billion. This is already 65% of the total public offering in 2012, JPY 470 billion, a record high since 2007. Because large inflow of new money coming into J-REITs, J-REITs are becoming very active buyers real estate, and such transactions include signature properties such as the acquisition of Sony’s headquarter building, ”Sony City Osaki” by Nippin Building Fund. Such signature transactions are also seen to further enhance popularity and perception of J-REITs.

      As a result of the prize increase, dividend yields of J-REITs have been compressed, from almost 6% at the beginning of the year to slightly less than 4%, based on current income. However, yield spread between J-REITs and 10-year government bond still is more than 3%, which is relatively high compared to other markets.

      Because of the appealing return and potential further income improvements through rent increases J-REITs will remain an attractive investment.

    27. 2013-03-21

      JPR acquires an office building in suburban Tokyo

      J-Reits

      Japan Prime Realty (JPR), a J-REIT sponsored by Tokyo Tatemono, a major developer specialized in office and commercial properties, announced that they will purchase an office building located in Saitama-city, suburban Tokyo for the purchase price of JPY 6.1 billion. JPR currently has AUM of JPY 392 billion with 58 properties.

      The office building, “Omiya Prime East”, built in 2009, has 9 floors above ground with gross floor area of 9,204 sqm. It is located within 6 minutes walk from JR Omiya station. Omiya district of Saitama-city is the northern sub-center of greater Tokyo where governmental public services offices as well as business and commercial functions are concentrated. JR Omiya-station is the first stop of northern bound bullet trains from Tokyo. The office building is currently 100% occupied by four tenants. Assumed NOI is JPY 373 million at a 94% occupancy will result in 6.1% investment return.

      Further details under:
      http://www.jpr-reit.co.jp/site/file/tmp-TpKDV.pdf

    28. 2013-03-06

      NBF acquires interests in 4 Office Properties in one Week

      J-Reits

      Nippon Building Fund (NBF), a J-REIT sponsored by Mitsui Fudosan and specialized in office property, announced between Feb 28 and March 5, 2013 that they purchased interest in 4 office properties for the aggregate purchase price of JPY 91.9 billion. As of February 28, 2013, NBF has AUM of JPY 1,015 billion with 71 properties, before these acquisitions.

      The largest acquisition among the four is 60% interest in “Sony City Osaki”, the headquarter building of Sony, for the purchase price of JPY 66.7 billion. The seller is Sony, and Sony will continue to occupy the property as a tenant. The remaining 40% will be owned by undisclosed institutional investors. The property was built in February 2011, and has 25 floors above ground with gross floor area of 123,604 sqm. It is located near JR Osaki Station of Yamanote Line, the most popular commuter line in Tokyo. Expected NOI and NOI yield is JPY 2,867 million and 4.3%, respectively.

      The other acquisitions are:
      (1) 50% interest in “Shibuya Garden Front” and “Shibuya Garden Front Annex” (built in 2003) for JPY 11.6 billion, with expected NOI yield of 4.3%. With this acquisition, NBF’s interest in the property will become 100%. The seller is Sumitomo Life Insurance who has 35% interest in the equity of NBF. It is located near JR Shibuya station, one of the busiest terminals in Tokyo. The property was occupied by one tenant except for “Annex” for retail shops,
      (2) An office building(built in 1993) near JR Ikebukuro station, another busiest terminal, also from Sumitomo Life, for JPY 8.8 billion, with expected NOI yield of 6.0%, and
      (3) 10% interest in “PanasonicTokyo Shiodome” (built in 2003), the Tokyo Headquarter building of Panasonic, from Panasonic, for JPY 5 billion, with expected NOI yield of 4.3%. The remaining 90% interest will be owned by Mitsui Sumitomo Lease & Finance. Panasonic will continue to occupy as a sole tenant.

      These four acquisitions were financed by NBF’s secondary offering announced on January 7 raising JPY 66.7 billion, and additional bank borrowings.

      For further details:
      http://www.nbf-m.com/nbf_e/release/files/release371.pdf
      http://www.nbf-m.com/nbf_e/release/files/release370.pdf
      http://www.nbf-m.com/nbf_e/release/files/release369.pdf
      http://www.nbf-m.com/nbf_e/release/files/release367.pdf

    29. 2013-03-01

      Daiwa House REIT raises JPY 11 billion, acquires two properties

      J-Reits

      Daiwa House Residential, a J-REIT sponsored by Daiwa House, a major housing constructer and specialized in residential properties, announced that they will raise JPY 11 billion by secondary offering and will acquire two residential properties in Osaka and in Fukuoka for the aggregate purchase price of JPY 5.7 billion. The REIT currently has AUM of 213 billion with 123 properties.

      The property in Osaka-city, “Royal Park Namba”, is the 162 unit rental apartment located in Numba, the southern commercial district in Osaka-city. The purchase price is JPY 2.8 billion. The seller is an SPC associated with the sponsor, Daiwa House. The other property is the 215 unit rental apartment in Fukuoka-city. The purchase price is JPY 2.9 billion. The seller is an undisclosed third party.

      For further details;
      http://www.daiwahouse-resi-reit.co.jp/eng/cms/whats/20130301_155041p4Zw.pdf
      http://www.daiwahouse-resi-reit.co.jp/eng/cms/whats/20130301_155059pFqf.pdf

    30. 2013-02-22

      United Urban raises JPY 21.7 billion, acquires 4 properties

      J-Reits

      United Urban, a J-REIT sponsored by Marubeni, one of the major trading companies in Japan, announced that they plan to raise JPY 21.7 billion by secondary offering, and will acquire four properties for the aggregate purchase price of JPY 40.2 billion. United Urban currently has AUM of JPY 426.8 billion with 92 properties. The portfolio comprises office, commercial, hotels and residential properties.

      The largest acquisition among the four is “Yodobashi Camera Multimedia Kichijoji”, a commercial building currently occupied by Yodobashi Camera, a major electric appliance retailer, for the purchase price of JPY 28 billion. The property was built in 1974 and renovated in a large scale in 2008. It was originally designed for a department store and has gross floor area of 37,933 sqm. The sole lessee is Yodobashi Camera, but they sub-lease to several retail shops and restaurants. It was located a few minute walk from JR Kichijoji station, one of the most popular suburban terminal in metropolitan Tokyo. The seller is an SPC associated with Hulic, a major developer and Mizuho group company. United Urban exercise a right of first refusal for acquiring the property. Expected NOI and NOI yield are JPY 1.45 billion and 5.2%, respectively.

      The other acquisitions are;
      (1) a load-side retail property (built in 2009) occupied by Yamada Electric, another electric appliance retailer, located in Matsudo-city in suburban Tokyo for JPY 5.15 billion, with expected NOI yield of 7.3%. The seller is a third party,
      (2) A residential property (built in 2003) in central Tokyo for JPY 5 billion with expected NOI yield of 5.6%. The property is used for service apartments. Thus, the hotel manager is the sole lessee, except for retail shop area. The seller is an SPC associated with Marubeni, the sponsor of the REIT, and
      (3) A hotel property (built in 2010) in Nagoya-city for JPY 2 billion, with expected NOI of 7.3%. The sole lessee is a hotel operator. The seller is an SPC associated with Marubeni.

      For further details:
      http://www.united-reit.co.jp/site/file/tmp-aZRAD.pdf
      http://www.united-reit.co.jp/site/file/tmp-MeMmy.pdf

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