Announcement

Wave of Record-Setting Transactions Observed in September 2007

10.24.2007

Please click here for the full version of this release.PDF

Tokyo - October 24, 2007 - The NIKKEI REAL ESTATE MARKET REPORT, an online media operated by Nikkei Business Publications, Inc. (Headquarters: Tokyo, President: Seiichi Oteru), recently carried out a fact-finding survey on large real estate deals in Japan, and released the top 30 deals based on price. It is based on roughly 8,000 transactions on commercial real estate made in this century.

Large Real Estate Deals exceeding One Billion Dollars Rapidly Increase over the Past Year

The number of large real estate deals exceeding USD 1 billion is rapidly increasing in the Japanese real estate market. Among the deals made over the past six years and nine months since January 2001, 14 cases exceeded USD 1 billion (calculated at JPY 117 per USD) in transaction price. Of the 14 cases, eight deals were made in the past one year.

In particular, a wave of record-setting deals was observed in September 2007. A major real estate developer Mori Trust and a fund management company DaVinci Advisors made the winning bid of JPY 231 billion (approximately USD 2 billion, 11,400 per ft2) to buy the Toranomon Pastoral Hotel. Tokyu Land acquired the Ginza Toshiba Building, located at major commercial district, for JPY 161 billion (USD 1.4 billion, 33,900 per ft2). Mitsubishi Estate and Heiwa Real Estate won with a bid of JPY 115 billion (USD 1 billion, 6,400 per ft2) for a plot of land in North-Shinjuku, Tokyo. Mitsui Fudosan acquired a 33% stake in Imperial Hotel Ltd. for JPY 86 billion (USD 740 million). All of these four deals were made with the aim of redevelopment in central Tokyo. In addition, U.S.-based ProLogis and Singapore-based GIC Real Estate acquired 17 logistics facilities of Matsushita Group for JPY 85 billion (USD 730 million).

The highest in price was a development area nearby Osaka Station

The top 30 deals based on transaction price are shown on the full version of this release. The highest in price was the land in the A and C blocks of Umeda North Yard, a development area stretching out from the north exit of JR Osaka Station. A joint organization formed by companies such as Mitsubishi Estate and Orix Real Estate won the tender in November 2006. The price is about JPY 310 billion (USD 2.7 billion, 10,800 per ft2), according to sources. The second highest in price was JPY 281 billion (USD 2.4 billion) for the 13 hotels of All Nippon Airways (ANA), acquired by the Morgan Stanley Group in April 2007. Toranomon Pastoral Hotel was the third highest transaction. Most of the buyers are major real estate developers, but acquisitions by fund management companies are also prominent.

"During the years surveyed, the long process of adjustment since the bursting of the bubble economy in the early 1990s came to an end, and the real estate market began to recover, starting with urban areas", says Taro Tokunaga, editor in chief of the NIKKEI REAL ESTATE MARKET REPORT. "Through this period, the real estate market continued to expand, supported by investment from overseas and the listing of REITs (Real Estate Investment Trusts) on stock exchanges. It is expected that the market will continue to expand with plans to sell large-scale government-owned plots."

About the NIKKEI REAL ESTATE MARKET REPORT: An online media by Nikkei Business Publications, Inc., which is a wholly owned subsidiary of the leading business newspaper publisher NIKKEI, Inc. It offers exclusive news on real estate deals and developments in Japan, as well as in-depth market analysis to the specialists. More information can be found at http://realestate.nikkeibp.co.jp/

Most Read Articles

  • Today
  • Weekly
  • Monthly
  • 1 Itochu developing 53,000 m2 GFA Tokyo Bay area logistics facility
  • 2 M&G invests in 55,700 m2 GFA logistics facility in Atsugi City, Kanagawa
  • 3 Blackstone completes sale of Japanese residences worth Y260bn
  • 4 2016 Year in Review - Top 10 Deals
  • 5 Premier REIT to acquire Angelo Gordon’s Sphere Tower, 58% gain in price
  • 6 Properst sells Meguro-ku apartment building to Hong Kong company
  • 7 Aichi Prefecture selling large retail facility in September bid
  • 8 Hankyu Realty acquires 4,000 m2 in Shibuya from Cristian organization
  • 9 Daibiru developing 5,000 m2 GFA retail building in Akihabara
  • 10 Satellite TV operator Sky Perfect JSAT relocating to Akasaka Intercity Air
  • 1 Blackstone completes sale of Japanese residences worth Y260bn
  • 2 Alpha Investment sells Roppongi retail building
  • 3 Tokyu Land private REIT acquires properties in Osaka
  • 4 Properst sells Meguro-ku apartment building to Hong Kong company
  • 5 Fortress also wins bid for public housing portfolio in eastern Japan
  • 6 Daiwa House investing Y40bn in Shinjuku mixed-use development
  • 7 LaSalle buys shopping mall in Hyogo Prefecture
  • 8 Family office acquires three adjacent buildings in Ginza
  • 9 M&G invests in 55,700 m2 GFA logistics facility in Atsugi City, Kanagawa
  • 10 Fortress acquiring 60,000 employment promotion housing units for Y37 bn
  • 1 CBRE GI acquires 39 residential buildings for German investor
  • 2 Invincible acquires Arakawa-ku apartment tower for Y22bn
  • 3 One floor of Ginza Six transferred from Hulic to GreenOak
  • 4 Premier REIT to acquire Angelo Gordon’s Sphere Tower, 58% gain in price
  • 5 Nomura wins bid for 4,000 m2 of land in Ebisu for Y11bn
  • 6 CBRE GI acquires in Osaka for German investor (updated)
  • 7 Mitsubishi Corp's private REIT acquires Ginza retail facility
  • 8 Hulic purchases former Bic Camera store in Shinjuku
  • 9 MUJI opens its own brand hotel in Ginza
  • 10 Ichigo to acquire Centro for Y3.2bn in M&A

Daily headline feeds twitter twitter

MORE SURVEY AND ANALYSIS Our regularly updated proprietary survey on market trends.

CLOSING RENT SURVEY

Our proprietary survey of closing rents for rental office buildings in Tokyo and Yokohama

RETAIL RENT SURVEY

Advertised rents and vacancy on major shopping streets in Ginza, Omotesando, Shinjuku, etc.

PROJECT MAP

A map and list of the 160 large-scale office building development projects currently in progress in Tokyo.

OFFICE MARKET INDEX

Advertised rents and vacancy rates in major office districts -Tokyo, Nagoya, Osaka, Fukuoka Free to access

About Us

Founded in 1969, Nikkei Business Publications is the publisher of the Nikkei Real Estate Market Report and is the leading provider of business information and commercial property transaction data for Japan. Part of the Nikkei Group, one of the world's largest financial media companies, Nikkei Business Publications is based in Tokyo and has over 900 employees.

Editorial Hotline

Please direct your questions and comments on our editorial contents to Jun Homma.

+81-3-6811-8875
realestate[at]nikkeibp.co.jp

For questions on fees, passwords, etc.,
please contact Customer Service. >>