According to the Nikkei Shimbun, music and entertainment production company Avex is selling their headquarter building in Omotesando for an estimated 70 billion Yen (approx. US$675 million).
Tokyo Shoko Research has reported that Avex is netting an estimated profit of 29 billion Yen on the sale of the building, which had a book value of 42.9 billion Yen. This will give them an estimated year-end net profit of 15 billion Yen. This comes after a tough year for the music industry, with the pandemic causing money-making live shows and concerts to be cancelled. Avex incurred a 3.2 billion Yen loss for April-September and sought voluntary retirement from 103 staff this month.
The head office tower was rebuilt in December 2017. The 101-meter tall building has a total floor area of 28,300 square meters (approx. 305,000 sq.ft) and sits on 5,000 square meters of land fronting Aoyama Street.
The news of the sale first broke back in November, with the Toyo Keizai Shimbun reporting that Canadian fund BentallGreenOak (BGO) had received preferential negotiation rights. Avex publicly denied having made a decision on the sale a day following the news report. It turned out to be correct, with BGO reported by Nikkei as the buyer. In October it was reported that the fund plans to invest up to 1 trillion Yen (US$9.5 billion) in commercial real estate in Japan over the next few years.
The Nikkei Shimbun, December 23, 2020.
Tokyo Shoko Research, December 24, 2020.
NHK, December 24, 2020.
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