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Tokyo borrowers play negative rates game in office property boon

BOJ's decision to expand purchases of Reits expected to prompt investors to put more money into property

Tokyo

CREDIT Suisse Group AG is predicting prices for prime Tokyo office space may rise 10 per cent this year as a Japanese real estate investment trust refinanced bank debt in an agreement that means it will get paid to borrow.

GLP J-REIT said in a statement last week it agreed to swap floating rates for a fixed cost with Nomura Securities Co on about 5.3 billion yen (S$65 million) of debt. The Reit will receive about 480,000 yen a year net for borrowing the funds, a rate of minus 0.009 per cent,...

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