Global logistics service company Nippon Express is mulling the sale of their head office building in Shiodome. The 28-story office tower could fetch as much as 100 billion Yen (approx. US$955 million). Several funds have already expressed interest.
*Update: The building sold to MinebeaMitsumi, a machinery component manufacturer, for 73.2 billion Yen with the sale taking place in April 2022.
The 135-meter tall office building was built in 2003. It sits on a 5,500 sqm site across the highway from the Hamarikyu Gardens and on the southern side of the Conrad Tokyo, and has a total building area of 46,350 sqm. The basement of the building includes a martial arts hall and sumo wrestling ring.
Back in late 2019, Nippon Express began construction on a new headquarters in Kanda Izumicho, Chiyoda, and will relocate to this building in September 2021. The vacated floors in the Shiodome building will be offered for lease. However, the current pandemic could make it difficult to attract new commercial tenants in the short-term, which may be the reason for the possible sale.
This news comes just days after it was reported that advertising giant Dentsu is considering selling their head office building nearby for somewhere around 300 billion Yen. If successful, this would result in the most expensive single-building sale in Japan’s history. Dentsu’s 210-meter tall building is about 300 meters down the street from Nippon Express and has a total building size of 231,700 sqm.
In a climate of cheap and easy access to financing, global funds are aggressively pursuing real estate acquisitions in Japan, and especially Tokyo. Finding buyers for prime assets at high prices poses no challenge. Music label Avex announced the sale of their headquarters in Omotesando to BentallGreenOak for 70 billion Yen a few months ago, while apparel company Sanyo Shokai quickly found a buyer for their flagship building in Ginza last year.
The Nikkei Shimbun, January 27, 2021.
The Yomiuri Shimbun, January 27, 2021.
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