Deal Highlights (September 2021)

Morgan Stanley acquires large office building in Yokohama’s Minato-Mirai

PPFA Japan Six TMK, which is a special purpose company believed to be affiliated with Morgan Stanley, acquired 50% of the ownership in Yokohama Nomura Building in Minato-Mirai, Nishi-ku, Yokohama City. The price was around 33 billion yen [$290 million], according to sources. The sellers were Nomura Real Estate Development of Shinjuku-ku and Nomura Research Institute.

JRE REIT to acquire part of Grand Front Osaka

REIT Japan Real Estate (JRE) will acquire part of Grand Front Osaka in Kita-ku, Osaka City. The total acquisition price is 21 billion yen [$190 million]. The seller is Mitsubishi Estate, which is the REIT’s sponsor. Grand Front Osaka is a large-scale mixed-use facility consisting of offices, retail facilities, a hotel, etc. The REIT will acquire part of Umekita Plaza and South Building and part of the North Building that constitute Grand Front Osaka. It will acquire 49% quasi co-ownership interest in 10% of the trust beneficiary interests in co-ownership interest for both buildings.

Two Nihombashi super high-rise buildings to be developed

Tokyu Land, Mitsui Fudosan and Nippon Steel Kowa Real Estate submitted a draft of the Nihomashi Itchome East District Urban Redevelopment Project. The project calls for the construction of two super high-rise buildings and three small buildings for public and public utility facilities in the area to the east of Showa-dori Street in Nihombashi 1-chome. Construction of the super high-rise building that mainly accommodates offices will start in fiscal 2026, with completion targeted for fiscal 2030. The construction period for the building that mainly consists of residential floors is from fiscal 2031 to fiscal 2034.

Mitsubishi private REIT acquires apartment in Chuo-ku, Osaka City

Nippon Open Ended, a private REIT managed by Mitsubishi Jisho Investment Advisors of Chuo-ku, acquired Serenite Sakaisuji-Hommachi Plie, a rental apartment building in Minami-Kyuhojimachi, Chuo-ku, Osaka City. The seller was apartment building developer Sunada Property of Hirakata City, Osaka Prefecture.

WeWork Japan weighs move away from leases in expansion push

WeWork Japan is expected to specialize in managing coworking offices, Nikkei has learned, moving away from directly leasing space to reduce its financial exposure while continuing to expand. The company, which has 38 locations in Japan, intends to expand under the new business model as early as 2022, WeWork Japan CEO Johnny Yoo told Nikkei. The pivot would pave the way for growing to 100 to 200 locations, he said. With many of the current coworking spaces in Tokyo and Osaka, the expansion would include such regional cities as Sapporo and Hiroshima.

HJ Asset Management acquires Ikebukuro office building from Phoenix

HJ Asset Management acquired Infinity Ikebukuro (formerly KT Excel Building) in Ikebukuro, Toshima-ku. The seller was Hong Kong’s Phoenix Property Investors. Once owned by an individual, the building passed through the hands of telecommunications line reseller Hikari Tsushin and Heiwa Real Estate before being acquired by Phoenix in June 2019.

Fujitsu terminates leases for over 15,000 tsubos in Tokyo

Fujitsu is reorganizing its offices, terminating office building tenancies one after another so that the total amount of terminated floor area, including that of group companies, is estimated to exceed 15,000 tsubos [49,600 m2] in Tokyo alone. Including offices in Kawasaki and Yokohama, over 20,000 tsubos [66,100 m2] has been terminated.

Germany’s Allianz acquires five rental apartments in Tokyo

Allianz Real Estate acquired five rental apartments in Tokyo including Shinagawa-ku and Shinjuku-ku. The total acquisition price was approximately 5 billion yen [$44 million]. The five buildings acquired this time will constitute a portfolio of seven buildings together with two rental apartments which will be handed over in the future. The company is expected to incorporate them into Allianz Real Estate Asia-Pacific (AREAP) Core I, a fund which is making investments jointly with National Pension Service (NPS) of South Korea.

NTT Urban acquires large serviced-apartment building in Shinagawa

NTT Urban Development of Chiyoda-ku acquired Bureau Shinagawa, a serviced apartment building in Konan, Minato-ku. The price was 12.8 billion yen [$110 million]. The seller was a special purpose company of Octave Japan of Minato-ku. The SPC was invested in by multiple Hong Kongers.

Myria purchases Ikebukuro apartment building from MUJI

Chiyoda-ku’s Myria Residential acquired Duo Stage Higashi-Ikebukuro, a rental apartment building in Higashi-Ikebukuro, Toshima-ku. The seller was Ryohin Keikaku, the operator of “MUJI” chain stores. Ryohin Keikaku acquired the property for an estimated price of 2.6 billion yen [$23 million] in 2015.

Blackstone acquires three buildings from Loadstar Capital

JMOP Two Holding TMK, a special purpose company that is believed to be affiliated with The Blackstone Group, acquired three buildings, including Prime Koishikawa Building in Kohinata, Bunkyo- ku. The seller of all three properties was Loadstar Capital.

CRE Logistics REIT to acquire Osaka warehouse for Y22.3bn

CRE Logistics REIT will acquire LogiSquare Osaka Katano in Katano City, Osaka Prefecture on September 15. The acquisition price is 22.37 billion yen [$200 million]. The seller is CRE, which is the REIT’s sponsor and the developer of the facility. With this transaction, the REIT’s acquisition price based AUM will be approximately 134.69 billion yen [$1.2 billion] in 20 properties.

Myria Residential acquires four apartment buildings in Tokyo

It has come to light that Myria Residential of Chiyoda-ku acquired four rental apartment buildings in Tokyo. They are located in the wards of Nakano-ku, Ota-ku, Sumida-ku and Shinjuku-ku. The total number of residential units is 136. Myria Residential was established in Tokyo in 2017. It is a real estate company under the umbrella of a major U.S. pension fund.

Blackstone acquires two buildings through transfer of shares

The Blackstone Group acquired two buildings in Nishi-Ochiai, Shinjuku-ku, which are a rental apartment building and a fee-based elderly care nursing home, through its special purpose company Echigo GK. The two buildings were originally owned by Shinjuku-ku-based Isetan Mitsukoshi Real Estate, which was under the umbrella of Isetan Mitsukoshi Holdings

Download full PDF to see Other deals in September 2021.