Orix JREIT buys 50% of Tokyo office for ¥29.4bn, takes full control of Okinawa complex
Orix JREIT is paying ¥29.4 billion ($185 million) for a half-stake in Toyosu Prime Square in Tokyo and ¥10.6 billion to take full ownership of the Naha Shin-Toshin Center Building in Okinawa. The two acquisitions total ¥40 billion and are expected to enhance unitholder value, the trust's manager sai
Orix Corporation-sponsored Orix JREIT has agreed to pay ¥29.4 billion ($185 million) for a 50 per cent stake in a Tokyo office block, leading a cluster of Japanese property transactions announced Wednesday. The seller of the interest in Toyosu Prime Square, identified by OJR as a Japanese limited liability company, is understood to be a vehicle controlled by Fuyo General Lease. Global One REIT will retain the remaining half of the 12-storey property in Koto ward.
OJR is also paying ¥10.6 billion to buy Daiwa House REIT’s half of the Naha Shin-Toshin Center Building, a mixed-use complex in Okinawa, lifting its ownership to 100 per cent. The interest will transfer in five equal 10 per cent tranches between 31 Aug 2026 and 31 Aug 2028, bringing the two additions to a combined ¥40 billion. “OJR has decided to acquire the properties based on the judgment that the acquisition will contribute to the enhancement of unitholder value, as the properties have upside potential in the future,” the trust’s manager said in a filing.
Completed in 2010, Toyosu Prime Square provides 32,282 square metres (347,475 square feet) of leasable space in a 41,741 square metre office, retail and parking complex. The property is a three-minute walk from Toyosu station on the Tokyo Metro Yurakucho and Yurikamome lines. The consideration works out to ¥1.82 million ($11,500) per square metre of leasable area attributable to OJR’s stake. The purchase implies an appraisal net operating income yield of 3.7 per cent and a yield after depreciation of 3.3 per cent, with the price representing a 1.2 per cent discount to a July valuation of ¥29.75 billion. The 24-tenant building was fully occupied at the end of June, up from 86.3 per cent two years earlier. Global One REIT, sponsored by Meiji Yasuda Life and Mitsubishi UFJ Trust and Banking, acquired its equivalent half-interest from Fuyo for ¥21 billion in April 2019, making OJR’s pricing 40 per cent higher than the earlier trade. The Toyosu transaction is set to close on 30 September using new borrowings and cash on hand, the manager said.
The Okinawa asset is a 2011-vintage complex spanning 34,180 square metres across 19 above-ground floors and a basement, with office, retail and hotel space. OJR, which paid ¥10 billion for its existing half in 2019, expects sole ownership to reduce operating costs and enable more flexible leasing, while the new interest carries a 4.9 per cent appraisal NOI yield. Daiwa House Industry-sponsored DHR acquired its share for ¥7.6 billion and expects a ¥3.9 billion gain from the ¥10.6 billion disposal. In a separate filing, DHR’s manager said the 15-year-old property was approaching a point requiring decisions on capital expenditure and operations, prompting the co-owners to centralise management under OJR.
DHR also agreed Wednesday to buy the Mimaru Tokyo Ikebukuro hotel from Fuyo General Lease for ¥11.5 billion, while selling D Project Inuyama Building B in Aichi prefecture for ¥2.5 billion and the Hapias Kaita retail land in Hiroshima for ¥1.6 billion. “DHR will conduct the disposition in line with our growth strategy to pursue higher rents and target a highly inflation-resistant portfolio,” the trust’s manager said.
OJR’s latest moves follow its ¥22.5 billion acquisition of the 304-key Holiday Inn Express Osaka City Centre Midosuji from Sweden’s EQT in October. The purchase valued the central Osaka hotel at ¥74 million per room and produced a 4.6 per cent appraisal NOI yield. Earlier in 2025, the trust bought Hotel Universal Port Vita near Universal Studios Japan from its sponsor for ¥35 billion, while selling an ageing Tokyo office and retail property to Orix for a combined ¥18 billion. Completion of the announced acquisitions and disposals will leave OJR with 123 properties valued at ¥838 billion ($5.3 billion) by acquisition price. Offices will account for 52.3 per cent of the portfolio and hotels for 18 per cent.
