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Dubbed Legal Itachibori Building, the nine-storey building sits on an 813 sq m site. It has a gross building area of about 5,618 sq m and a net rentable area of 3,869 sq m.
With an occupancy rate of 82 percent, the property is approximately five minutes away from Hommachi station within the heart of Osaka’s Central Business District.
The investment in Legal Itachibori Building will be made via its pooled investment vehicle, Thakral Japan Properties (TJP), in which Thakral owns a 50 percent stake.
Thakral’s other real estate investments in Japan are all in Osaka. They include two hotels (the R Hotels Inn Osaka Kita Umeda and Best Western Osaka Tsukamoto Hotel), two office buildings (the Yotsubashi East Building and Yotsubashi Nakano Building) and the Namba retail redevelopment site.
Thakral expects the investments in Japan to generate positive returns for shareholders as the country’s real estate market is forecasted to remain upbeat.
“We believe that real estate in Japan – especially Osaka – is in a sweet spot. Osaka, which has been lagging behind Tokyo for some time in economic and investment activity – is now enjoying strong demand,” noted Thakral’s CEO Inderbethal Singh Thakral.
“The growth in tourism here has led to greater demand for hotels. Its office market is now showing stronger rental growth backed by solid demand and limited supply in the market, attracting both domestic and overseas investors. Aside from properties catering for the rising tourist numbers, we have chosen to invest in quality office buildings as these remain the preferred asset class for global investors. We are therefore confident of the strategic value of our Japanese real estate portfolio.”
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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