Sekisui House Reit has sold the trust beneficiary interest in the Gotenyama SH Building for 70 billion Yen (US$517 million), a 36% premium over what it was acquired for in 2014. The sale price exceeded its appraisal value by 13%.
The 7-story building has a total floor area of almost 20,000 sqm and was built in 2011. It has been designed as a data center with high efficiency equipment, cooling and security systems.
The buyer, TIS Inc., was the long-term tenant that had been leasing the building under a 20 year contract. The tenant expressed interest in acquiring the property. Sekisui had achieved a net operating income after depreciation of 3.5%. The gross rent for the entire building was 181.5 million Yen (US$1.34 million) per month, which works out to around 9,075 Yen per square meter or 30,000 Yen per tsubo. The sale price works out to around 3.5 million Yen/sqm (US$2,400/sq.ft) based on the total building size.
The REIT will carry out the disposition over 10 installments between 2023 and 2028.
Source: Sekisui House Reit News Release, March 29, 2023.
