Department store divests of real estate arm, 124-meter tall aged-care home for Nishiazabu, and office tenant hit with 700 million Yen penalty for canceling lease application. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Isetan Mitsukoshi sells real estate division to Blackstone
Isetan Mitsukoshi Holdings, the holding company of the Mitsukoshi and Isetan department stores, is selling its rental apartment leasing business to US fund Blackstone Group. The Nikkei Shimbun reports that the sale price is estimated to be around 30 billion Yen (approx. 285 million USD). Department stores have been struggling with a steep drop in sales this year due to the coronavirus pandemic. Isetan Mitsukoshi is expecting to report a loss of 60 billion Yen for the end of financial year. In February 2021 they will close the Mitsukoshi Ebisu Store in Ebisu Garden Place. Last year, Blackstone paid 300 billion Yen to re-acquire a portfolio of 220 rental apartment buildings around Tokyo and Osaka from Anbang Insurance.
36-story high-rise aged-care home for Nishiazabu
Mitsui Fudosan Residential is developing a 36-story, 430-room aged-care / senior serviced-residence facility in Nishiazabu, Tokyo, under their Park WellState brand. The site (pictured above) was originally home to the 19-story Novartis headquarter building and the Nishiazabu Park Towers rental apartment building. The new building will be 124-meters tall and have a total floor area of 46,480 sqm. Construction is scheduled to start in February 2021 with completion in February 2024.
Office tenant pays 700 million Yen to cancel lease application
Game developer GREE is relocating its head office from Roppongi Hills Mori Tower to nearby Roppongi Hills Gate Tower. The company had originally planned to move to a different location, but rescinded the application and will continue on as a tenant of Mori Building, albeit in a different building. As a result of canceling the other office application, the company had to pay a cancellation penalty of 705 million Yen (approx. US$6.7 million) to the landlord.
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