Invesco Office J-REIT has agreed to buy two offices in Tokyo and Yokohama City from Godo Kaisha Wing Property for a combined JPY 8.14bn (US$74.2m).
The REIT acquired the Otowa Prime Building in Tokyo for JPY 6.83bn and the Techno Wave 100 property in Yokohama City for JPY 1.31bn, according to an announcement.
The 5,719 sq.m. Tokyo property is located in the city’s Bunkyo ward, home to tertiary institutions including The University of Tokyo, University of Tsukuba and Ochanomizu University.
Otowa Prime building (image: Invesco Office J-REIT)
The REIT said the property, situated near the Gokokuji and the Edogawabashi metro stations, was a rare find due to a shortage of office buildings and relatively new buildings available for lease in the area.
The 18-storey Yokohama asset has 50,463 sq.m. of total floor area and is close to the Kanagawa-Shimmachi train station, which is one stop away from the Yokohama central station.
A lack of new supply in Yokohama City has pushed the office vacancy rate to about 3%, as of 3Q18.
“The property is expected to be attractive to tenants who look for wide spaces for reasonable rent level in the area surrounding Yokohama or Tokyo metropolitan area,” the company said.
The transactions follow Invesco Office J-REIT’s acquisitions of the IBF Planning Building, Kojimachi Crystal City and the Nishi-Shinjuku Prime Square in Tokyo, as well as the Prime Tower Shin-Urayasu asset in Chiba, last year.