News, Events and Media
IDERA launches second private fund for residential properties
IDERA Capital Management, a Japanese real estate asset management company, announced that they launched a second private fund for investing in residential properties in major cities in Japan. The first closing of Japan Urban Residential Investment Club II (JURIC II) was successfully completed with two unnamed European institutional investors. The fund acquired two rental residential properties for middle income families located in Osaka-city and Kyoto-city. IDERA closed the first fund, JURIC I, in March of last year.
IDERA used to be an independent real estate asset manager in Japan. In May of this year, however, IDERA was acquired by Fosun Group, one of Chinese investment group based in Shanghai and listed in Hong Kong Stock Exchange.
Nikkei Newspaper reported in May that Fosun Group, acquired 98% interest in Idera Capital Management for JPY 6.8 billion. At that time Idera had AUM of JPY 163 billion. The portfolio comprises mostly office properties in metropolitan Tokyo. Fosun envisages Idera as avenue for their further active real estate investment in Japan.
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Invincible raises JPY 23.8 Billion, acquires 18 hotel properties
Invincible Investment Corporation, a J-REIT sponsored by US based Fortress, announced that they will raise JPY 23.8 billion by secondary offering and will acquire 18 hotel properties for the aggregate purchase price of JPY 40 billion. The J-REIT has been investing mainly in residential properties in the past. The J-REIT currently has AUM of JPY 78 billion, approximately 75% of which comprises residential properties with the remainder, office, commercial and hotel properties. Prior to the proposed acquisition, however, they revised their investment guideline and defined hotel properties, on top of residential properties, as their core assets.
All of the 18 hotels are lodging specialized hotels, not full-service hotels. They offer overnight, weekly and monthly stay for business travellers and sightseers with limited amenity.
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Mitsui Fudosan announces first capital increase since 32 years – largest capital market transaction in the real estate sector since 40 years
Mitsui Fudosan announces a capital increase by JPY 325 Billion, their first capital increase since 1982. According to a company comment, the dramatic market changes since their 2012 midterm financial planning have triggered this decision.
Over the past decades Mitsui Fudosan depended on bonds and bank lending. Companies have raised about $17 billion in Japan so far this year through equity-linked deals, compared with $19 billion during the same period last year and just $5.7 billion in 2012, according to Dealogic.
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LaSalle acquires a large suburban shopping mall in from BlackRock
According to Nikkei Real Estate Market Report, a fund established and managed by US based LaSalle Investment Management acquired a large shopping mall in suburban Gifu-city, near metropolitan Nagoya. The shopping mall was built in 2006 and has gross floor area of 117,219 sqm. It also accommodates around 5,000 parking lots. It is a typical large-scale suburban shopping mall. The seller is an SPC associated with US based BlackRock. The purchase price was not disclosed. According to an investor familiar with the mall, however, the current value of the property would be around JPY 21 billion.
Invesco sells a commercial property in Osaka-city for JPY 13 Billion
According to Nikkei Real Estate Market Report, US based Invesco sold a commercial building in central Osaka-city. The property, “Prime Square Shinsaibashi”, built in 2007, has 13 floors above ground and one below with gross floor area of 9,729 sqm. It is located in Shinsaibashi in the center of Osaka-city and along the Midousuji Street, the most popular shopping/retail street in Osaka-city. The key tenant of the building is Dolce & Gabbana, an Italian apparel brand, who occupied 1st and 2nd floors. The sales price is around JPY 13 billion. Although purchaser was not disclosed, it is believed to be an SPC associated with US based Elliot Management. Other details are not known.
AXA acquires a large office property in metropolitan Tokyo.
According to Nikkei Real Estate Market Report, an SPC associated with AXA Life acquired a large office property in 23 wards district of metropolitan Tokyo. The property, “Nakano Central Park East”, built in 2012, has 10 floors above ground with 2 below with gross floor area of 39,000 sqm. It is located in Nakano-ward, western rim of 23 wards district of metropolitan Tokyo, and within a few-minute walking distance from JR Nakano station of Chuo line whereby direct train access to both JR Tokyo and Shinjuku stations is available. Although purchase price was not disclosed, this is one of the largest real estate acquisitions in Japan by AXA Group. The seller of the property was an SPC formed by Tokyo Tatemono, Hulic and other investors.
SEB Asset Management acquires an office/retail complex in Tokyo and a hotel in Yokohama
Nikkei Real Estate reports the purchase of a hotel in Yokohama by SEB Asset Management. The operator of this hotel that opened in 2011 is Hotel Aipha One, a budget hotel company, operating around 50 hotels mainly in regional cities. This Yokohama hotel is their first hotel in the 6 major cities: Greater Tokyo, Yokohama, Nagoya, Osaka, Sapporo and Fukuoka.
SEB Asset Management announced that they have acquired an office/retail complex at the edge of the central 5 wards in Tokyo for their SEB Asian Property Fund II, an investment fund under Luxemburg law specializing Asian real estate assets. Acquisition price is JPY 5.5 billion.
The property, “Primegate”, built in 2013, has 10 floors above ground and one below with gross floor area of 4,621 sqm of which 2009 sqm over 4 floors is for retail use and 1.551 sqm over 7 floors is for office use. It is located within one minute from JR Takatanobaba station of Yamanote line, the most popular commuter line, and also from the nearest subway station.
According to Nikkei Real Estate Market Report, the seller of the property is Secured Capital Investment Management.
For further details on the property:
GE acquires a newly built residential property in Osaka
According to Nikkei Real Estate Market Report, GE acquired a newly built rental apartment property in Osaka in October of last year. The property, “Serenite Kitahama”, built in January 2013, is 140-unit rental apartment property. It is located in Higashi Koraibashi, CBD Osaka, and has convenient access to business/commercial areas in Osaka city via municipal subway system. The seller and the builder of the property is a regional real estate developer. The price and other details are not known.
Grosvenor acquires a luxury residential property in CBD Tokyo
UK based Grosvenor announced that Grosvenor Asia Pacific, the regional arm of the UK developer and investment manager, has acquired a majority stake in the luxury apartment complex in Minami-Azabu, CBD Tokyo.
The property, “Opus Arisgawa Terrace and Residence”, built in 2004, has gross floor area of 25,511 sqm and accommodates 99 apartment units comprising studio and 1 to 4 bedrooms. The property is located in one of the well known upscale residential areas in CBD Tokyo and within eight minute walk from a nearby subway station. Grosvenor’s stake corresponds to 77 of the building’s 99 units.
Union Investment finally secured tenant on their Tokyo office property
According to Nikkei Real Estate Market Report, an office property that Union Investment of Germany acquired 6 years ago and had been vacant since 2010 has secured a key tenant. The tenant, Daiko Shoken Business, a middle and back servicing agent for securities businesses, will consolidate their seven offices scattered in Tokyo into this office property.
The subject property, “Shiomi Koyama Building”, built in 1995, has 10 floors above ground and one below with gross floor area of 27,032 sqm. It is located in Shiomi, Koto-ward, eastern metropolitan Tokyo, and within 5 minutes walk from JR Shiomi station in the JR Keiyo commuter line. Union Investment acquired the property in February, 2008, at the purchase price of over JPY 20 billion. Uchida Yoko, an office and educational IT service provider and the key tenant at that time, left the property in February 2010. The property had been vacant since then.
Deutsche Bank invests in logistics properties in Japan
Nikkei Newspaper reported that Deutsche Bank, through one of their group funds, commences in investing in logistics properties in Japan. According to the article, they have acquired a property in Kawasaki-city. The property has 5 floors above ground with gross floor area of 37,000 sqm. The purchase price was not disclosed.
Demand for logistics properties has been very strong due to volume surge in internet retails, having grown to JPY 10 trillion a year, compared to JPY 12 trillion a year of supermarkets sales. Deutsche Bank estimates sales and purchases of logistics properties amounted to JPY 710 billion in this year, 90% increase from the 2012 total volume.
Foreign funds acquires Japanese real estate in view of relative value
Nikkei Newspaper posted an article that states foreign real estate funds are accelerating acquisition of office and commercial properties mainly in metropolitan Tokyo area. According to the article, Jones Lang LaSalle (JLL), an US real estate service company, estimates that investment in Japanese commercial real estate in 2013 will increase by 50 to 75% compared to that in last year. This is remarkable in view of 10% increase in the global commercial real estate investment.
Besides domestic investments also foreign funds support this remarkable increase. For instance, LaSalle Investment Management of JLL group established a new fund for foreign pension funds, investing JPY 300 billion in Japanese real estate in the coming 2 to 3 years. The main targets are office properties and logistic facilities. They have acquired a mid-size office property in CBD Tokyo, commenced construction of a logistics facility in Fukuoka-city and plan to develop a large scale logistics facility in suburban Tokyo, jointly with Mitsubishi Estate. It is notable that LaSalle invested only JPY 30 billion in Japanese real estate in 2012. On top of LaSalle, GE resumed office real estate investment in Japan. Jointly with Canadian pension funds, they will invest JPY 100 billion in office properties in Tokyo. Their last office investment in Japan was before 2008 financial crisis. Grosvenor, a UK real estate service company, also plans to establish a new fund targeting Japanese real estate.
Background for their bullishness is relative value of Japanese real estate compared to other markets in the world. Office rent in Tokyo is still 40% below compared to the level before 2008 financial crisis, whereas those in London and Hong Kong are only 20% below. On the other hand, office demand in Tokyo is increasing and vacancy rate in CBD5 in Tokyo is 8.29%, that is, 1% improvement from a year ago. At the same time, demand for logistics facilities is soaring due to fierce competition in internet commerce markets.
Mitsubishi Corp acquires a large-scale shopping mall from Blackstone
According to Nikkei Real Estate Market Report, Diamond Realty Management (DREAM), a subsidiary of Mitsubishi Corporation, acquired a large-scale shopping mall in Kashiwa-city, northeastern suburban Tokyo for approximately JPY 13 billion. The seller is a fund sponsored by Blackstone Group.
The shopping mall, “Aeon Mall Kashiwa”, built in 2006, has 6 floors above ground with gross floor area of 90,000 sqm and gross rentable area of 44,000 sqm. The key tenant is Aeon, a major supermarket chain operator, who occupies in 1st floor. 2nd and 3rd floors are occupied by approximately 100 specialty shops, and 4th to 6 floors facilitate 2,000 parking lots. Other details of the deal are not known.
Pacific Alliance Group sold a residential tower in Kobe to an individual investor
According to Nikkei Real Estate Market Report, Hong Kong based Pacific Alliance Group (PAG) sold a large residential tower in Kobe city to an individual investor in Hong Kong. The property, “Sannomiya Museum Tower”, built in 2008, has 40 floors above ground and one below with gross floor area of 34,000 sqm. It has 125 rental apartment units. It is located in Sannomiya, the most popular commercial district in Kobe-city. PAG bought the property in October 2011. The selling price was not disclosed.
Malaysian conglomerate made first investment in Ginza property
According to Nikkei Real Estate Market Report, Global Investment Japan, an asset management company associated with a Malaysian conglomerate, acquired an office and retail building in Ginza, CBD Tokyo in June. The property, “Quartier Blanc Ginza”, built in 1979, has 10 floors above ground and one below. Other details, including acquisition price, are not known.
Goldman Sachs acquires 9 residential properties in Tokyo
According to Nikkei Real Estate Market Report, an SPC associated with Goldman Sachs acquired 9 rental apartment properties in Tokyo in April. The seller is a fund jointly established by Diamond Realty Management, a subsidiary of Mitsubishi Corporation, Grosvenor Fund Management Japan and others. Details of the transactions were not disclosed.
LaSalle closes its third logistics fund in Japan
US based LaSalle Investment management announced the final close of JPY 40.8 billion Japan Logistics Fund III. This is the third fund arranged by LaSalle, targeting logistics facilities in Japan, following fund I closed in2004 and Fund II closed in 2007. LaSalle established its first Asian presence in 2001, and currently manages USD 5.5 billion property assets in Asia Pacific.
Prada opens flagship store in Osaka, property owner is Prudential Real Estate Investors
Prada opened a new flagship store in Osaka on July 13, succeeding to its first flagship store in Aoyama, CBD Tokyo. According to Nikkei Real Estate Market Report, the building was developed by Sumitomo Corporation and the investor is Prudential Real Estate Investors.
The property was newly built and has 6 floors above ground with gross floor area of 1,420 sqm. It is located along the “Mido-suji” main street, in the most popular shopping district in CBD Osaka.
GE acquires three rental apartment buildings in Osaka
According to Nikkei Real Estate Market Report, GE acquired three rental apartment buildings in Osaka in January of this year. The three buildings have in total 286 rental units. They are all for single dwellers. The three buildings were developed by Link System, a real estate developer in Osaka city. GE seems to hold these properties as part of their residential portfolio. Other details are unknown.
A Taiwanese investor acquires high-end residential property in Tokyo
According to Nikkei Real Estate Market Report, an undisclosed Taiwanese investor acquired a luxurious rental apartment property located in Roppongi, CBD Tokyo. The investment was arranged by Agility Asset Advisor, an independent real estate asset management company who will act as the asset manager of the property.
The property was built in 1991 and has gross floor area of 2,729 sqm. The property accommodates 11 rental units, ranging from two bedroom units to four bed room units. The acquisition price was not disclosed.
Sumitomo Corp acquires a retail and office property from Angelo Gordon
According to Nikkei Real Estate Market Report, Sumitomo Corporation, a major trading company, acquired a retail/office mixed-use building in Ikebukuro, Tokyo, in April from Angelo Gordon, a US fund manager. Angelo Gordon acquired the property in January 2011.
The Property, “Ikebukuro Rokumaru Building”, built in 1979 and renewed in 2004, has eight floors above ground and two below with gross floor area of 7,633 sqm. It is located in just five minute walk from JR Ikebukuro station, one of the busiest railway terminals in Tokyo. Sumitomo Corporation would hold the property for a while, but the future redevelopment plan is in scope. The purchase price was not disclosed.
Fortress acquires three office buildings in Tokyo
According to Nikkei Real Estate Market Report, Fortress, Fortress Investment Group, a US based private equity firm, acquired three office properties in Tokyo. The sellers are SPCs established by DaVinci, now defunct real estate developer/investor.
One of the subject properties, “DaVinci Nihonbashi 179”, built in 1979, has gross floor area of 4, 414 sqm. It is located in Nihonbashi, CBD Tokyo, and only three minutes walk from nearby subway station. Another property, “DaVinci Sakurabashi”, built in 1985, has gross floor area of 8,172 sqm. It is located in Hatchobori, CBD Tokyo. The other property, “DaVinci Shinjuku”, built in 1980, has gross floor area of 2,000 sqm. It is located in three minutes walk from JR Shinjuku station, the busiest railroad terminal in Tokyo. Acquisition prices were not disclosed.
Goldman acquires 5 residential properties in Osaka
According to Nikkei Real Estate Market Report, Goldman Sachs acquired five residential properties in Osaka-city. All of them are rental apartment properties and the total number of rental units is 229. Most of the units are for single residents.
Of the five properties, the largest is “Capitol Saiwai-Cho”. It was built in2007 and has 15 floors above ground with gross floor area of 3, 490 sqm. It is located in downtown Osaka-city and within 2 minutes walk from nearby commuter subway. Units are either studio or one bedroom, and monthly rents are between JPY 60.000 to 130.000. Other properties also have similar characteristics; they are located in the center or nearby downtown in Osaka-city, are built in 2000’s with fairly small rental units and have good commuting access. The acquisition prices are not disclosed.
Axa and Mitsui Sumitomo Trust acquires second office property
Axa Real Estate Investment Manager announced that their Tokyo Office Property Fund (“TOP”) has acquired an office property, “Kyobashi Square”. The acquisition was made in co-investment with the fund managed by Mitsui Sumitomo Trust Real Estate Investment Management. This is the second acquisition of Tokyo office property by TOP. In March of this year, they acquired an office property in Shinjuku, also with co-investment with Mitsui Sumitomo Trust.
According to Nikkei Real Estate Market Report, the property, built in 2010, has 13 floors above ground and one below with gross floor area of 5,894 sqm. It is located in Kyobashi, CBD Tokyo and within walking distance from JR Tokyo Station. It is currently fully occupied by 10 tenants. The seller is an SPC associated with Ichigo Real Estate Investment Management. The purchase price was not disclosed, but it is estimated approximately JPY 6.5 billion.
For further details, please see the following AXA announcement:
Hulic acquires a large office building in Tokyo for JPY 50 billion
According to Nikkei Real Estate Market Report, Hulic, the Mizuho group real estate developer, acquired a large office building in Toranomon, CBD Tokyo for JPY 50 billion. The seller is Invesco Global Real Estate Asia Pacific, the subsidiary of UK based investment manager.
The subject property, “Kamiyacho Central Place”, built in 1985, has 11 floors above ground and two below with gross floor area of 41,000 sqm. It is located in just 2 minutes walk from nearby subway station. Hulic plans to launch a J-REIT sponsored by them next year, and this property could be one of initial AUM for the J-REIT.
Ascott acquires 11 residential properties in Japan
Ascott Residence Trust, a Singapore listed REIT, announced that they will acquire 11 rental housing properties in Japan for the aggregate purchase price of JPY 9.2 billion. The 11 properties constitute 959 rental units. Ascott is one of the REITs sponsored by CapitaLand, the Singapore government sponsored developer. Ascott holds rental housing properties, mostly service apartments, in 32 cities in 12 countries in Europe and Asia. In Japan, they have held 22 properties, before this acquisition. The 11 properties will be acquired from the fund jointly owned by CapitaLand and Bahrain based Al Capita Bank.
The 11 properties are located in Sapporo, Sendai, Kyoto, Hiroshima, Fukuoka and Saga. The largest acquisition is the one in Fukuoka-city, “Actus Hakata V Tower”, 296-unit rental apartments with gross floor area of 9,306 sqm. The appraisal value is JPY 3.17 billion. It is located in the center of Fukuoka-city, the largest city in Kyushu Island with population of 1.5 million. The second largest acquisition is the one in Sapporo-city, a 140 unit rental property with gross floor area of 5,896 sqm. The appraisal value is JPY 1.39 billion. Saporro-city is the largest city in Hokkaido Island with population of 1.9 million. Of the remaining 9 properties, 4 will be master-leased to JSP, a service apartment provider in Kyoto.
For further details, please see the following announcement:
REIT specialized in Japanese properties will be listed in Singapore
According to Nikkei Real Estate Market Report, Croesus Retail Trust, a REIT specialized in commercial properties in Japan, will be listed in Singapore Stock Exchange in mid-May. The main sponsor of the REIT is Croesus Group. Croesus was founded by Mr. Jim Chan Chen-Wong, a Taiwanese living in Tokyo who has career in investments in Citigroup and in Evergreen. Daiwa House, a major Japanese housing builder, and Marubeni, a major trading company, will also participate in the operation of the REIT. The asset manager in Japan will be Tozai Asset Management. Once listed, this will be the second Singapore listed REIT specialized in Japanese properties, next to Saizen REIT who specialize in residential properties and was listed in 2007.
The initial AUM at the time of listing will be JPY 50.4 billion, comprising four commercial properties. The largest of the four is “Mourage Shoubu”, a multi-tenants suburban shopping mall, built in 2008, with gross floor area of 140,000 sqm. It is located in Saitama prefecture, north of Tokyo. It will be acquired from a SPC associated with Sojitsu, a major trading company, for JPY 20.6 billion. The other properties are; “Eon Town Moriya”, a suburban shopping mall, built in 2007, with gross floor area of 68,099 sqm. located in Ibaragi prefecture, north-east of Tokyo, for JPY 10.2 billion, “Eon Town Suzuka” another suburban shopping mall, built in 2007, with gross floor area of 43,500 sqm. located in Mie prefecture, south-west of Nagoya, for JPY 8.4 billion, both will be acquired from Daiwa House, and “Luz Shinsaibashi” , built in 2009, with gross floor area of 2,509 sqm. located in the center of Osaka City that is solely occupied by H&M and acquired from Marubeni for JPY 9 billion.
For further details, please see the following listing prospectus:
Goodman and Abu Dhabi develops logistic facility near Nagoya
Goodman Group, an Australian property developer/manager, announced that the Goodman Japan Development Partnership, a 50/50 joint venture between Goodman and Abu Dhabi Investment Council, has acquired a 26,000 sqm development site near Nagoya, and will develop a 51,000 sqm logistic and distribution facility on the site. The site is located in Obu-city, suburban Nagoya, and has good traffic access to CBD, Nagoya and Nagoya Port. The planned facility has four floors above ground with ramp access. 53% of the 51,000 sqm net leasable area has already pre-leased to a major Japanese transportation company.
For further details, please see the following announcement:
Grosvenor acquires a luxury residential property in central Tokyo
Grosvenor, UK based private real estate developer and investor, announced that they have acquired a luxury apartment complex located in central Tokyo. The property, “Park Habio Azabu Tower”, built in 2009, has 27 floors above ground and one below with gross floor area of 13,448 sqm. It has 99 residential units and 3 office units. It is located in Azabu, high-end residential area in central Tokyo. The acquisition price was not disclosed.
Grosvenor has commenced investment in Japan in 2001, and currently have AUM of JPY 100 billion. They have targeted for high-end residential properties, and plan to increase Asian properties holdings up to 15% of their total portfolio.
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