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CapitaLand Mall Asia has agreed to acquire four office and retail properties in Greater Tokyo for a combined price of JPY49.7 billion (S$620.1 million), strengthening the group’s presence in the world’s most populous city and boosting its Japan portfolio to around S$2.5 billion.
These consist of one shopping mall in Saitama known as Seiyu & Sundrug (pictured) and one office building in Tokyo called Kokugikan Front, as well as two office towers in Yokohama, Sun Hamada and Yokohama Blue Avenue. Including transaction costs, CapitaLand’s total investment in these properties amounts to about JPY51.0 billion (S$636.3 million).
“Tokyo is a key global city and Asia Pacific’s top real estate development and investment market, drawing investors with the country’s economic stability, low borrowing costs and high return prospects,” said Jason Leow, CapitaLand Mall Asia’s CEO, adding that the acquisitions will contribute a net operating income of about S$25 million per annum.
CapitaLand Mall Asia’s Country Head for Japan, Kek Chee How, added: “The long-term forecast of Greater Tokyo’s office market remains positive, with vacancies in central Tokyo expected to stay below five percent through to 2025. As the three office buildings we are acquiring are stabilised assets located in areas with limited new supply, we are confident they will continue to generate stable recurring income.”
Meanwhile, the purchase of Seiyu & Sundrug, a popular destination among locals in Saitama Prefecture for shopping purposes, will complement the group’s existing shopping mall portfolio. With a gross floor area of nearly 400,000 sq ft, the property will increase CapitaLand’s overall retail space in Japan by 25 percent to over two million sq ft.
At present, CapitaLand owns and manages four shopping malls in the country, namely the Olinas Mall, La Park Mizue and Vivit Minami-Funabashi in Tokyo, as well as Coop Kobe NishinomiyaHigashi in Kobe.
The group’s Japanese portfolio includes a 20 percent stake in office building Shinjuku Front Tower.
Furthermore, Ascott, CapitaLand’s wholly-owned serviced residence business, owns and manages 46 properties with over 3,500 apartment units in the country.
Image source: CapitaLand
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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