TOKYO -- Mori Trust will acquire a landmark Tokyo building complex from U.S.-based Lone Star Funds for about 130 billion yen ($1.24 billion) as early as Friday at a time when more large properties are starting to change hands with the market looking up.
The Japanese real estate developer had been granted first-refusal rights for the deal about a month ago, after Singaporean sovereign wealth fund GIC backed out of negotiations.
Meguro Gajoen is a multifacility complex near the Yamanote loop train line. Its office space is almost fully occupied, housing Japanese operations of such foreign companies as Amazon, Porsche and Walt Disney.
Mori Trust will acquire most of the 37,000-sq.-meter plot and all five buildings, which boast a combined floor space of 150,000 sq. meters. Facilities include a 19-floor office building, a wedding chapel and commercial space.
Lone Star acquired Gajoen in the early 2000s but decided to hold on to the property after the market crashed from the 2008 financial crisis. It had opened bidding recently amid recovering market conditions.
Large real estate deals have surged of late, especially in the heart of Tokyo. GIC entered into final talks late this month for Pacific Century Place Marunouchi, a large building by the Tokyo rail station.