Singapore's CapitaLand to acquire office buildings, mall in Greater Tokyo
Acquisition worth $449 million will bring total Japan assets to $1.7 billion
JUSTINA LEE, Nikkei staff writer
SINGAPORE -- Singaporean real estate developer CapitaLand has announced plans to acquire four office and retail properties in Greater Tokyo for 51 billion yen ($449 million), including transaction costs, to strengthen its foothold in Japan.
The portfolio will be acquired through its wholly owned subsidiary CapitaLand Mall Asia. Before transaction costs, the price will be 49.7 billion yen and will include two office buildings in Yokohama, an office building in Tokyo and a shopping mall in Saitama. The acquisition will be funded by a combination of internal funds and borrowing. The completion date is expected to be in the first quarter of this year.
Jason Leow, CEO of CapitaLand Mall Asia and Coordinating CEO, Asia of CapitaLand Limited said that the enlarged portfolio will "advance a long-term business strategy" for the group's operations in Japan. He added that it will also deepen the group's presence in Greater Tokyo "through assets with stable yields and recurring cash flow."
Kek Chee How, country head of Japan at CapitaLand Mall Asia, said that the long term forecast of Greater Tokyo "remains positive, with vacancies in central Tokyo expected to say below 5% through to 2025."
The latest acquisition will help to bring CapitaLand's total Japanese asset size to about S$2.5 billion ($1.7 billion). The company is capitalizing on the rapidly growing Japanese property market, which is attracting foreign investors with high return prospects and low borrowing costs. It currently owns and manages four shopping malls in Japan, located in Tokyo and Kobe. It also owns and manages 46 properties with more than 3,500 apartment units in Japan through its wholly owned serviced residence arm, Ascott Limited.