A joint-venture led by AXA Investment Managers – Real Assets, the property arm of the French insurer, has snapped up an office development in Tokyo and pre-let the entire building to flexible workspace provider IWG.
The project will offer about 3,500 sq.m. of grade A office workspace in the Roppongi central business district, according to an announcement from AXA IM Real Assets.
The demolition of the existing property is expected during the first of this year, with completion anticipated in early 2021.
AXA IM Real Assets is the majority shareholder in the JV with Hong Kong-based property investment firm Alyssa Advisors.
The European firm has also enlisted alternative investment firm PAG Investment Management as the project’s development manager.
IWG, formerly known as Regus, secured a long-term pre-let agreement on the development set to commence once the project is completed.
“The global shift towards flexible working is accelerating and we continue to identify ways to be real estate pioneers in this field, for the benefit of our investors,” said Laurent Jacquemin, head of Asia Pacific at AXA IM Real Assets.
The purchase price and the value of the development were not disclosed.
AXA IM Real Assets has €79bn in assets under management.