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CapitaLand Mall Asia to buy 4 properties in Tokyo for S$636.3m

The largest of three income-producing office properties in Greater Tokyo that CapitaLand is acquiring, the 555,000-square-foot Yokohama Blue Avenue is strategically located in Yokohama, about a 25-minute car ride from Tokyo’s Central Business District. The long-term forecast of Greater Tokyo’s office market remains positive, with vacancies in central Tokyo expected to stay below 5% through to 2025.

CAPITALAND'S shopping mall arm, CapitaLand Mall Asia, will buy four office and retail properties in Japan for S$636.3 million, inclusive of transaction costs.

The acquisition, which will strengthen CapitaLand's foothold in Greater Tokyo, is expected to increase the group's total asset size in Japan to about S$2.5 billion. It is also expected to be immediately accretive, contributing a net operating income of about S$25 million per year, providing CapitaLand with a stable source of income.

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 & Sundrug.

Without the transaction costs, the agreed property price is S$620.1 million.

The acquisition will be funded by a combination of internal funds and borrowings, and is expected to be completed in the first quarter of this year.

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