Chiyoda-ku office bldg sold for 50 billion Yen

Tokyu Land, the Development Bank of Japan (DBJ) and Kenedix have purchased the former head office of the Shinsei Bank in Chiyoda-ku from a Morgan Stanley fund for 50 billion Yen (605 million USD) - less than half what Morgan Stanley paid for it in 2008.

The new owners plan to demolish the 19-year old building and replace it with a new one. The total cost of the project, including purchasing the existing building, is estimated at 80 billion Yen (970 million USD).

Demolition will commence in 2013 and the new 20-storey building will be completed in 2017. The new building will have a total floor area of 57,500 sqm, and will be almost the same scale as the current building, which is 60,000 sqm. However, the new building will have more leasable floor space.Read more


Tepco sells head office bldg for 25 billion Yen

On September 27, Tepco announced that they had sold the Toshin Building in Shinbashi, Minato-ku, for 25 billion Yen (320 million USD).

The sale contract was signed on the 27th with a closing date scheduled for March 2013. The buyer has not been disclosed.Read more


Tokyo Office Vacancy Rates for August

Ark Hills Sengokuyama Mori Tower

According to Miki Shoji, the commercial vacancy rates in Tokyo's central 5 wards (Chiyoda, Chuo, Minato, Shinjuku and Shibuya) in August dropped 0.13 points from the previous month to 9.17%. The vacancy rate on brand new buildings dropped 3.48 points to 30.16%.

In Shinjuku-ku, the vacancy rate dropped 1.05 points to 10.85%, as large foreign financial corporations began to consolidate their various offices into one space. In Minato-ku, the rate increased by 0.48% to 10.10%. This was partly due to the completion of Ark Hills Sengokuyama Mori Tower. The 47 storey tower has a total floorspace of 43,423 tsubo (143,296 sqm).Read more


Thai property developer buys Hokkaido ski resort

Thai property developer Property Perfect has invested 770 million baht (approximately 1.9 billion Yen, or 24 million USD) in the takeover of the relatively unknown Kiroro Ski Resort, 43km west of Sapporo, from Mitsui Real Estate.Read more


Ark Hills Sengokuyama Mori Tower reaches completion

Construction of Ark Hills Sengokuyama Mori Tower, a combined residential and office tower in the Roppongi/Toranomon area, was completed on August 7.

The two hectare site has a 47-storey mixed residential and office tower, along with 8-storey low-rise apartments. The development took a total of 24 years, when including the long process of negotiating with local residents.

In the high-rise tower, offices are located on floors 25 to 47, while residences are on floors 3 to 24. Currently, 55% of the commercial tenants have been confirmed. They are predominantly foreign law offices and IT companies.Read more


Foreign investors return to Japan's property market

Roppongi Arents. Purchased by Grosvenor from Japan Tobacco in October 2011.

According to the Mainichi Shimbun, Foreign investors and foreign capital investment corporations are showing enthusiasm for Japan's real estate market. European and American property and investment companies are continuing to purchase residential and commercial buildings, while a major US bank has set forth on establishing a REIT in Japan.

The background to this renewed vigor is the outflow of funds in Europe due to the European debt crisis, and a general feeling that the real estate market in Japan has bottomed out. Experts are anticipating that the long-stagnating real estate market is finally reaching a turning point.Read more


Rosenka land values drop for 4th year in a row, but signs of recovery in urban areas

On July 2, the National Tax Agency announced the 2012 Rosenka land valuations. The average land value across 358,000 sites assessed nationwide fell 2.8% from 2011. This is the fourth continuous year of decline, however the rate of decline shrunk 0.3 points from 2011.Read more