CapitaLand expands in Greater Tokyo

CapitaLand expands in Greater Tokyo

CapitaLand Limited, through its wholly owned mall business CapitaLand Mall Asia, has entered into conditional sale and purchase agreements to acquire a portfolio of four income-producing office and retail properties in Japan’s Great Tokyo Area, at an agreed property price of 49.7 billion yen (US$437.5 million).

The acquisition will strengthen CapitaLand’s foothold in Greater Tokyo, the world’s most populous metropolis, and increase the Group’s total asset size in Japan to about US$1.75 billion.

The portfolio comprises: two office buildings in Yokohama, Yokohama Blue Avenue and Sun Hamada; one office building in Tokyo, Kokugikan Front; and one shopping mall in Saitama, Seiyu and Sundrug. Including transaction costs, the total investment for the portfolio is about 51 billion yen (US$450 million).

Jason Leow, CEO of CapitaLand Mall Asia says “[the] Great Tokyo Area has been increasing, reaching nearly 38 million people in 2015. The trend is expected to continue, underpinning Greater Tokyo’s economic development with an expanding labour force”.

Image: The largest of three income-producing office properties in Greater Tokyo that CapitaLand is acquiring, the 555,000-square-foot Yokohama Blue Avenue is located in Yokohama, about a 25-minute car ride from Tokyo’s Central Business District.