Japan Prime Realty Investment Corporation has agreed to buy co-ownership interests in the JA Building and Keidanren Kaikan in Tokyo's Otemachi district from its sponsor, Tokyo Tatemono, for ¥32.8bn, according to a filing on 16 October.
Why Japan Prime Realty Investment Corporation is buying Co-ownership interests in JA Building and Keidanren Kaikan, Otemachi (from Tokyo Tatemono)
JPR said the purchase uses its sponsor pipeline to add an S-class building in Otemachi, one of Japan's most competitive office areas, and that the property has a rent gap it aims to close when fixed-term leases are renewed. It wants growth that outpaces rising costs, including higher interest rates.
Deal terms and financing
The price compares with an appraisal value of ¥36.1bn and gives an NOI yield of 3.3%. JPR is acquiring a 12.1% share of the land and a 22.5% share of the sectionally owned building space, which is master-leased to Mitsubishi Estate and was 96.6% occupied. The purchase will be funded with borrowings and cash, with settlement on handover.
Regulatory approvals and timing
The contract was signed on 16 October and the acquisition is scheduled for 23 October 2026.
Market context
The 37-storey JA Building and 23-storey Keidanren Kaikan were completed in 2009 with the adjacent Nikkei Building as the first phase of the Otemachi chain redevelopment project, and are directly connected to Otemachi station.
