AXA Investment Managers – Real Assets completes acquisition of Tokyo office development

AXA Investment Managers – Real Assets has acquired, on behalf of clients and as part of its global build-to-core strategy, an office development opportunity in Tokyo, Japan.

AXA IM – Real Assets has undertaken this transaction as the majority shareholder in partnership with the Hong Kong–based company Alyssa Advisors, a privately held real estate investment and advisory firm primarily active in the Asia Pacific region.

The consortium has simultaneously agreed a long-term pre-let for the whole building with Regus Group (IWG), a provider of flexible workspace solutions, commencing on completion of the project, which is anticipated in early 2021.

“The acquisition of a prime office development opportunity demonstrates both the strength of our growing footprint in Tokyo, as well as our on the ground expertise, in what is an increasingly key market for us,” said Laurent Jacquemin, head of Asia Pacific at AXA IM – Real Assets. “The global shift towards flexible working is accelerating and we continue to identify ways to be real estate pioneers in this field, for the benefit of our investors. At the same time, securing a pre-let with a leading global business is a significant achievement, one that will support the reduction of the leasing risks associated with a new development.”

Situated in Roppongi, a major Tokyo central business district, the property benefits from excellent transport connectivity, with three subway stations in close proximity, including Roppongi Station, which is less than a one-minute walk.

Demolition of the existing vacant building is expected to commence in first half 2019. The completed development will deliver approximately 3,500 square meters (38,000 square feet) of class A office space, comprising flexible floor plates across nine floors.

PAG Investment Management will act as the development manager.