Best 20 Deals -In Review 2009

Best 20 Commercial Real Estate transactions in Japan, based on proprietary data made in 2009. The Big Bertha being the Pacific Century Place Marunouchi Deal was the biggest (Hit for 6), not far behind was the AIG Otemachi Building. As big acquisition deals go, such as the Shiodome Building (#5), the Resona Maruha Building (#8) and the TOA headquarters (#13) resume in the end of the year, the real estate market is showing some signs of recovery with foreign funds on the hunt many are acquiring or ready to pull the trigger.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

#1 SECURED Acquires Pacific Century Place Marunouchi for 140 Bil.

SECURED CAPITAL JAPAN announced on December 15 that it will be acquiring the office portion of Pacific Century Place Marunouchi. The acquisition price has not been revealed but it is estimated to be about 140 billion yen ($1.6 billion). This is the largest real estate transaction of 2009 in Japan.

#2 AIG Sells Otemachi Building for 115 Bil.

On May 11, AIG announced that it will sell the AIG Otemachi Building in Tokyo for approximately 115.5 billion yen (US $1.2 billion). The buyer is NIPPON LIFE INSURANCE. "The sale generated substantial interest from both Japanese and foreign investors, resulting in a very competitive bidding process," Edward Liddy, AIG’s Chairman and Chief Executive Officer said.

#3 NTT URBAN Obtains Leasehold for Land for 86 Bil.

On March 10, the Tokyo Metropolitan Bureau of Sewerage selected the NTT URBAN DEVELOPMENT group as the developer of an office and commercial building. The building will be developed above the Shibaura Water Reclamation Center in Shinagawa-ku, Tokyo.

#4 ASAHI LIFE Sells HQ to MITSUBISHI for 80 Bil.

In March 2009, ASAHI MUTUAL LIFE INSURANCE sold the Asahi Seimei Otemachi Building in Otemachi, Chiyoda-ku, Tokyo. The buyer is a special purpose company belonging to MITSUBISHI ESTATE and the price is slightly less than 80 billion yen (US $790 million).

#5 JRE Acquires 30% of Shiodome Building for 54 Bil.

JAPAN REAL ESTATE (JRE), a REIT, announced that it will acquire 30% quasi joint ownership of trust beneficiary interests in the Shiodome Building, located in Kaigan, Minato-ku, Tokyo. The acquisition price is 54.6 billion yen ($590 million) and will be delivered in January 2010. JRE already acquired a 10% ownership interest in the Shiodome Building in December 2008. Through this acquisition, it will own a 40% interest.

#6 HULIC Selling System Center for 46 Bil.

In April 2009, HULIC, a real estate company affiliated with MIZUHO FINANCIAL GROUP, announced that it will sell an information system center in Naka-Meguro, Tokyo. The property will be sold to its tenant, MIZUHO BANK.

#7 ACCOMMODATIONS FUND to Acquire 43 Bil. 

Apartment Portfolio

NIPPON ACCOMMODATIONS FUND, a REIT of MITSUI FUDOSAN, announced that it will acquire 18 rental apartment buildings in Tokyo and local core cities. The total acquisition cost is 42.6 billion yen ($460 million) and this transaction by NIPPON ACCOMMODATIONS will be the first large-scale acquisition by a REIT in quite some time.

#8 MITSUBISHI Acquires Otemachi Building for 42 Bil. 

Otemachi Development TMK, a special purpose company which MITSUBISHI ESTATE and other firms are shareholders in, decided in December 2009 to acquire 27% of compartmentalized ownership in the Resona Maruha Building, an office building located in Otemachi, Chiyoda-ku, Tokyo, from TOKYU REIT. The acquisition price is 42 billion yen ($470 million) and the property will be handed over in January 2010.

#9 DAIMARU Acquires Store in Osaka for 38 Bil.

On February 26, department store DAIMARU announced that it would acquire its rival’s flagship, the Sogo Shinsaibashi store in Osaka City for 37.91 billion yen (US $410 million). The store will be closed at the end of August and reopen as DAIMARU in November.

#10 KENEDIX Sells Building to CARLYLE for 34 Bil.

On June 30, major asset management firm KENEDIX announced its sale of KDX Toyosu Grandsquare, a large office building in Shinonome, Koto-ku, Tokyo. The buyer is a fund managed by the CARLYLE GROUP. The price was slightly less than 35 billion yen ($350 million).

#11 JPR REIT Acquires Olinas Tower for 31 Bil. 

In June 2009, JAPAN PRIME REALTY (JPR), a REIT sponsored by listed developer TOKYO TATEMONO, added Olinas Tower to its operating assets. The office building in Sumida-ku, Tokyo, was obtained for 31.3 billion yen (US $320 million) from the sponsor and several other owners.

#12 KANSAI URBAN BANKING Selling Headquarters for 24 Bil.

On September 24, KANSAI URBAN BANKING CORPORATION announced that it would sell its headquarters building in Chuo-ku, Osaka City. The large office and retail building near the busy Shinsaibashi intersection will be sold to KEIHANSHIN REAL ESTATE for 24.4 billion yen ($250 million).

#13 Kojimachi Dev Site Sold for 23 Bil.  a 39% Decline in Price

NIPPON TELEVISION NETWORK decided to acquire the building site of the TOA headquarters in Yonbancho, Chiyoda-ku, Tokyo, for 23.15 billion yen ($260 million). The seller is a special purpose company of real estate company SHOEI. The handover of the ownership is scheduled for March 2010.

#14 TOSHIBA Selling Parking Lot in Kawasaki for 22 Bil.

In March 2009, TOSHIBA decided to sell a 9,765 m2 parking lot adjacent to LAZONA Kawasaki Plaza, a large-scale commercial facility in front of JR Kawasaki Station. The buyer of the hourly parking lot is NREG TOSHIBA BUILDING, which is a consolidated subsidiary of NOMURA REAL ESTATE HOLDINGS.

#15 NOMURA REIT Reshuffles assets

In January 2009, NOMURA REAL ESTATE OFFICE FUND, a REIT, announced that it would acquire four office buildings in Tokyo including the Nomura Ueno Building. At the same time, it announced that it would sell three properties in Osaka, Sapporo and Hiroshima.

#16 ORIX JREIT Invests 18 Bil. Yen, Reshuffles Assets

In March 2009, ORIX JREIT acquired the ORIX Nishi-Shinjuku Building located in Shinjuku-ku, Tokyo and the Omiya Miyacho Building located in Saitama City. Both properties were acquired from ORIX REAL ESTATE and the total acquisition price was 18 billion yen (US $180 million).

#17 Mizuho Affiliate HULIC Acquires Building for 13 Bil.

In September 2009, HULIC, a real estate company affiliated with the MIZUHO FINANCIAL GROUP, acquired a rental office building in Kudankita, Chiyoda-ku, Tokyo. The Price is 13.5 billion yen ($140 million). The seller is a fund established by SIMPLEX INVESTMENT ADVISORS, an affiliate of GOLDMAN SACHS and AETOS CPITAL.

#18 Kuwait-backed ST MARTINS Acquires Apartment for 13 Bil.

In February 2009, U.K.-based ST MARTINS PROPERTY acquired a large-scale rental apartment building offering 281 residential units in the Tsukiji area of Tokyo. The acquisition price was 13 billion yen (US $130 million) and the seller of the property was DAVINCI ADVISORS.

#19 TOP REIT Acquires Kanda Building for 13 Bil.

TOP REIT decided to acquire the Sumitomo Shoji Nishikicho Building in Kanda-nishikicho, Chiyoda-ku, Tokyo. The price is 12.7 billion yen ($140 million) and the seller is major trading company SUMITOMO CORPORATION.

#20 PROLOGIS Builds Logistics Facility for 11 Bil.  in Misato

Prologis announced its plan to sell ProLogis Park Misato II to an affiliate of GIC, the Government of Singapore Investment Corporation, for 12.5 billion yen ($138 million). The contract is scheduled to close in April 2009.