A prominent office building in Tokyo, Japan’s Capital City has been agreed to be purchase by US insurance magnate Maurice Greenberg and Abu Dhabi Investment Council amounting 100 billion yen ($1bn).
Since 2008-2009 global economic recessions, the 14-storey Shiba Park Building will be Japan’s biggest property investment deal including foreign investors.
Foreign and Japanese investors are confident in buying the property despite of its ageing but distinctive structure because they believe that real estate assessments will revitalize as Prime Prime Minister Shinzo Abe’s pro-growth economic policies increases investor response and risk enthusiasm.
The group, led by property investor by Asia Pacific Land, includes Abu Dhabi Investment Council, Japan’s Secured Capital Investment Management Co and C.V. Starr & Co Inc, which is run by Greenberg, the billionaire former chief executive of American International Group Inc, the sources told Reuters.
Lenders including Mizuho Bank, Shinsei Bank and Commerz Japan Real Estate Finance Corp, a real estate lending unit of Commerzbank, will extend a combined 90 billion yen in loans, the sources said.
As Japan’s economy is projected to expand and the deal is a sign of confidence, the 31-year old Shiba Park Building, Tokyo’s central landmark will keep magneting tenants and maintain a steady rental income.
Shiba Park Building has a total floor space of 102,300 square meters puts it in the same class as the iconic Marunouchi Building, a prime commercial property in the capital’s hottest business district near Tokyo Station, at 159,720 square meters.