TOKYO—AXA Real Estate Investment Managers has led, on behalf of a fully-owned separate entity, the acquisition of Nakano Central Park East, a core office building in Tokyo.
The building had been owned by an investment entity of Tokyo Tatemono Co. Ltd., a leading Japanese developer.
The acquisition is one of the largest real estate transactions in Japan in the last twelve months.
Nakano Central Park East is a 39,025 square meters, prime office building situated beside Nakano Shikinomori Park. The property, which was built in March 2012 as part of an extensive redevelopment project, is one of two tower buildings on the site and comprises 12 floors, including 2 basements levels, of 2,800 sqm standard floor plates. The building also incorporates approximately 700 sqm of commercial space providing restaurants, cafes and convenience stores.
Nakano City, which borders the west end of the Shinjuku District in Tokyo, has a population of c. 313,000 and is one of Japan’s most densely populated districts. The building forms part of the local government’s significant redevelopment programme to create a self-contained site comprising a refurbished railway station, newly landscaped public park, a hospital and three new universities. The property is conveniently located within five minutes walking distance of Nakano station that has two Japan Railway lines and one Metro line.
Under the terms of the transaction, the building will be managed by AXA Real Estate’s specialist on-the-ground asset management team. Tokyo Tatemono will retain its involvement in the project, responsible for the overall management and maintenance of the wider development project and site.
“This is a highly significant acquisition for AXA Real Estate as it is the first acquisition that we have completed in Japan on behalf of a separate account client and it is of such a significant size,” said Tetsuya Karasawa, head of AXA Real Estate Japan. “ To acquire a prime high quality and prime asset, which offers stable long term income characteristics, in an increasingly competitive market for core investments, clearly demonstrates the ability of our established and experienced on-the-ground team to source and execute transactions of this caliber, which enables us to continue to meet the demands of our investors.”