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Tokyo Tatemono agrees to sell 22.5% of two Otemachi towers for ¥32.8bn

Japan Prime Realty Investment Corp. is the buyer, and the price is about 9% below a ¥36.1bn appraisal with a 3.3% NOI yield.

At a glance

  1. The buildings are JA Building and Keidanren Kaikan, in the business district near Tokyo Station.
  2. The agreed price is about ¥3.3 billion, or roughly 9%, below the ¥36.1 billion ($228 million) appraisal by Japan Valuers cited in the same report.
  3. The buyer is a Tokyo Stock Exchange-listed REIT sponsored by Tokyo Tatemono, making the deal a partial-interest transfer to a vehicle the seller sponsors.

Tokyo Tatemono has agreed to sell a 22.5% interest in two Otemachi office towers to Japan Prime Realty Investment Corp. for ¥32.8 billion ($207.4 million), IREI reported, citing Mingtiandi. The buildings are JA Building and Keidanren Kaikan, in the business district near Tokyo Station.

The agreed price is about ¥3.3 billion, or roughly 9%, below the ¥36.1 billion ($228 million) appraisal by Japan Valuers cited in the same report. The REIT's manager put the interest's net operating income yield at 3.3%. Applying that yield to the agreed price gives implied annual income of about ¥1.08 billion; capitalising the same income at the ¥36.1 billion appraisal implies a yield near 3.0%.

The buyer is a Tokyo Stock Exchange-listed REIT sponsored by Tokyo Tatemono, making the deal a partial-interest transfer to a vehicle the seller sponsors.

ItemDetail
SellerTokyo Tatemono
BuyerJapan Prime Realty Investment Corp. (TSE-listed REIT sponsored by Tokyo Tatemono)
AssetsJA Building and Keidanren Kaikan, Otemachi, Tokyo
Interest22.5%
Price¥32.8bn ($207.4m)
Appraisal¥36.1bn ($228m), Japan Valuers
NOI yield3.3% (per the REIT's manager)

Reported by the Deals desk from IREI (citing Mingtiandi). Published . Corrections

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