Deals

CapitaLand bags four Japan properties for $437m

The Singapore-headquartered property developer and fund manager has acquired three office buildings and a mall in Greater Tokyo.

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Singapore property developer and fund manager CapitaLand has grown its Japan assets under management to around S$2.5 billion ($1.7 billion; €1.66 billion) with the acquisition of four properties in Greater Tokyo.

Through its wholly owned shopping mall business CapitaLand Mall Asia, the firm has entered into conditional sale and purchase agreements to acquire three office properties and one shopping mall, for ¥49.7 billion ($437 million; $412 million). With transaction costs the total invested by CapitaLand will rise to ¥51 billion.

The portfolio comprises two office buildings in Yokohama – Yokohama Blue Avenue and Sun Hamada; one office building in Tokyo – Kokugikan Front; and one shopping mall in Saitama – Seiyu & Sundrug.

“As the capital of Japan, Tokyo is a key global city and Asia Pacific’s top real estate development and investment market, drawing investors with the country’s economic stability, low borrowing costs and high return prospects,” commented Jason Leow, chief executive of CapitaLand Mall Asia and coordinating CEO, Asia of CapitaLand.

“Even as Japan’s total population declines, the population in Greater Tokyo Area has been increasing, reaching nearly 38 million people in 2015. This trend is expected to continue, underpinning Greater Tokyo’s economic development with an expanding labor force.”

CapitaLand currently owns and manages four shopping malls in Japan – namely Olinas Mall, Vivit Minami-Funabashi and La Park Mizue in Tokyo; as well as Coop Kobe Nishinomiya Higashi in Kobe.

Through its wholly owned serviced residence arm, The Ascott Limited, CapitaLand owns and manages 46 properties with more than 3,500 apartment units in Japan. The firm’s Japan portfolio also includes a 20 percent stake in an office building – the Shinjuku Front Tower.

Headquartered and listed in Singapore, CapitaLand is an owner and manager of a global portfolio valued at more than S$78 billion, as at 31 December 2016, comprising integrated developments, shopping malls, serviced residences, offices, homes, real estate investment trusts (REITs) and funds.