Sekisui House sells Japanese portfolio to REIT for US$642m

Japanese developer Sekisui House has sold three offices and four residential buildings across Tokyo, Osaka and Kanagawa to its Sekisui House REIT for JPY 70.14bn (US$641.8m).

The transaction included the 12,472 sq.m. Akasaka Garden City office building valued at JPY 28.7bn in Tokyo’s Minato ward, the buyer announced last week.

The asset is located in a highly-concentrated business district in central Tokyo and is near the Akasaka-mitsuke, Nagata-cho and Aoyama-itchome train stations.

Akasaka Garden City (image: Sekisui House REIT)

The portfolio featured the 7,341 sq.m. Garden City Shinagawa Gotenyama office in Tokyo’s Shinagawa area, as well as the 12,958 sq.m. Hommachi Minami Garden City office in Osaka.

The J-REIT said the Garden City Shinagawa Gotenyama asset was located in a highly appealing for leading foreign companies, with four nearby trains stations.

The Hommachi Minami Garden City property is positioned on Midosuji Street, Osaka’s main street and home to numerous financial institutions including banks and insurance companies.

The portfolio had three Tokyo apartment complexes comprising more than 6,000 sq.m. of lettable area, as well as the 2,723 sq.m. Esty Maison Yokohama-aobadai North residential building in Yokohama, a city south of Tokyo.

The deal will grow Sekisui House REIT’s portfolio to 120 properties worth a combined JPY 527.5bn.

The deal follows Invesco Office J-REIT’s acquisition of two offices in Tokyo and Yokohama from Godo Kaisha Wing Property for a combined JPY 8.14bn (US$74.2m) earlier this month.

Sekisui House REIT was listed on the Tokyo stock exchange in 2014 and focuses mainly on prime residential, office and hotel real estate across Tokyo, Osaka and Nagoya.

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