Invesco Office J-REIT buys Japanese office assets valued at $1.3b

Invesco Office J-REIT has acquired three office buildings in Japan for a total of ¥132.4 billion ($1.3 billion), based on a 100 percent valuation.

The largest transaction was Queen’s Square (Towers B and C) in Yokohama, a submarket of Tokyo. Invesco acquired a 21.5 percent partial interest in the 1.66 million-square-foot office tower and a 480-room hotel from SMFL, which will retain the remaining interest.

The sales price for the 21.5 partial interest was ¥14.49 billion ($142.22 million), reflecting a 100 percent valuation of ¥67.34 billion, or ¥40,594 per square foot  ($661.53 million/$399 per square foot).

The portfolio consists of The Yokohama Bay Hotel Tokyu, a 28-story full-service hotel, and the Queen’s Square. SMFL acquired the portfolio in March 2014 from Sumitomo Corp.

In addition, Invesco Office J-REIT purchased a partial interest in Ebisu Prime Square in Tokyo. The seller was Tokyu Land, which acquired the property in December 2013 for ¥45.64 billion ($488.1 million).

Invesco Office J-REIT purchased a 49 partial interest. The sales price was ¥25.03 billion ($245.7 million), reflecting a 100 percent valuation of ¥51.1 billion, or ¥70,179 per square foot ($501.5 million/$689 per square foot). Tokyu Land will retain the remaining interest.

The asset, located in the submarket of Shibuya, totals 727,442 square feet. The property consists of a two-story building, a 13-story building and a 22-story building. The property also has street retail space totaling 75,886 square feet. Major tenants include Dr Ci:Labo, Actelion and Jin Corp.  

The third and final office property acquired by Invesco Office J-REIT was the Nagoya Prime Central Tower in Nagoya. The sales price was ¥14.6 billion, or ¥39,438 per square foot ($143 million/$387 per square foot). The seller was Tokyo Tatemono.

The 370,197-square-foot office property consists of two buildings, a 23-story office and an eight-story office. The property also has street retail space. It is 86 percent occupied. Major tenants include The Opera and Totec.