2012 Year in Review - Top 10 Deals by Price
The following is a presentation of the ten major real estate transactions based on price reported in 2012 by Nikkei Real Estate Market Report. During the period, the appetite of REITs to acquire properties was strong. There was a new J-REIT listing for the first time in four and a half years, as well as cases of several properties being acquired in bulk. Logistics investment is also becoming more active.
GLP Investment Corporation will list on the Tokyo Stock Exchange on December 21, 2012. It is a logistics facilities REIT established by Singapore based Global Logistic Properties (GLP), and the acquisition price of the initial 30 properties is approximately 208.7 billion yen [$2.5 billion]. It received approval to list on November 14. Although GLP was created by curving out the Japanese and Chinese logistics portfolios of Prologis, it has announced its entrance into the Brazilian market as well. It acquired 34 facilities and one development project in surrounding areas of Sao Paulo and Rio de Janeiro for 2.9 billion Real [$1.4 billion] from a local company.
Activia Properties REIT will be listed on the Tokyo Stock Exchange on June 13. The REIT is sponsored by Tokyu Land and will focus its investment on urban commercial facilities and office buildings in Tokyo. Its AUM at the time of listing will be approximately 170 billion yen [$2.1 billion] in 18 properties on an acquisition price basis.
The Tokyo Stock Exchange approved the listing of Daiwa House REIT. The REIT is a logistics and commercial facilities REIT sponsored by Daiwa House Industry and plans to list on November 28. The initial acquisition price-based AUM will be 114.52 billion yen [$1.4 billion]. Daiwa House registered the establishment of this REIT in September 2007. It planned to list in June 2008 but cancelled afterward. This will be its second attempt amidst the recovering REIT market. Daiwa House REIT Management in Chuo-ku, Tokyo will be responsible for the management.
Telecommunication operator SoftBank acquired the Fukuoka Yahoo! Japan Dome, which is the home stadium of the Fukuoka SoftBank Hawks professional baseball team. The seller is a special purpose company under the umbrella of the Government of Singapore Investment Corporation (GIC) and the acquisition price is 87 billion yen [$1 billion].
REIT Japan Retail Fund decided to purchase seven commercial facilities including the building that houses the Kiddy Land Harajuku Store. The total acquisition price amounts to 52.16 billion yen [640 million]. The Kiddy Land Harajuku Store is housed in G-Bldg. Omotesando, a commercial facility located in Jingumae, Shibuya-ku, Tokyo, which will be purchased for 5.85 billion yen [$72 million]. The seller is trading house Mitsubishi Corporation, the sponsor of the REIT.
Three companies, namely Kenedix, Tokyu Land and the Development Bank of Japan (DBJ), will acquire the former head office building of Shinsei Bank in Uchisaiwaicho, Chiyoda-ku, Tokyo through a special purpose company. The acquisition price is approximately 51 billion yen [$600 million]. The seller is a fund established by the Morgan Stanley Group. The three companies will jointly reconstruct the building into a rental office property.
REIT Japan Real Estate (JRE) announced it will acquire Harumi Front in Harumi, Chuo-ku, Tokyo and Higashi Nibancho Square in Ichibancho, Aoba-ku, Sendai City. The price of Harumi Front is 31.3 billion yen [$390 million] and that of Higashi Niban Square is 9.95 billion yen [$120 million], amounting to a total of 41.25 billion yen [$510 million]. The seller of both properties is a special purpose company of Mitsubishi Estate, the REIT's sponsor, and general contractor Kajima.
Industrial & Infrastructure Fund (IIF), a REIT sponsored by Mitsubishi Corporation and UBS, decided to acquire six properties including office buildings and a warehouse in Tokyo and Kanagawa Prefecture. The price is 37.27 billion yen [$470 million] in total. The most expensive among the properties is the Sun East Shinonome Building in Shinonome, Koto-ku, Tokyo. The seller is Sakura Industrial TMK, a fund formed by Singapore's Mapletree Investments.
REIT Japan Prime Realty (JPR) will purchase the 11,000 m2 leased land of the tentatively named Otemachi 1-6 Project currently under construction in Otemachi, Chiyoda-ku, Tokyo. The price is 36 billion yen [$430 million] or 3.17 million yen [$38,000] per m2. The seller is YK Tokyo Prime Stage, a special purpose company which is financed by developer Tokyo Tatemono and general contractor Taisei.
A fund established by U.S. based Fortress Investment Group has acquired three logistics facilities located in Kawasaki-ku, Kawasaki City, Kanagawa Prefecture. All three are large, multi-tenant facilities with aggregate gross floor area reaching approximately 390,000 m2. The total price appears to be between 30 billion yen to 35 billion yen [$360 million to $420 million].
Other Major Transacitons
- Angelo Gordon takes ownership in Kioicho Building 04.03.2012 (*Assessed market value:Y32.4bn)
- Details for assets incorporated to Kenedix Residential REIT at IPO 04.03.2012 (*Y30.4bn in total)
- NBF acquires Shiodome office for Y28.8bn 07.04.2012
- Mori Hills REIT to reshuffle Y25.6bn in assets 03.28.2012
- TEPCO closed sale of Shinbashi office for Y25bn 09.28.2012
- Advance Residence purchasing 15 apartment buildings 01.20.2012 (*Y23.4bn in total)
- CapitaMalls acquires Kinshicho Olinas for Y22.8bn 08.03.2012
- Japan Real Estate REIT acquiring Ueno building for Y22bn 05.23.2012
- Mitsubishi, Sankei win Otemachi Financial City floor bid 02.23.2012 (*Y22bn)
- Sekisui House SI REIT invests in apartment portfolio 02.28.2012 (*Appraisal value:Y20.2bn)
All above information is as of December 27, 2012. Only the cases with prices are known or estimated.