Brookfield Asset Management has agreed to acquire a landmark office building in Shiodome, central Tokyo, from a consortium of Japanese investors, including leading property investor, Hulic, for ¥300bn (€1.64bn) .
Completed in 2002, the 213-metre skyscraper is the global headquarters of advertising and communications company Dentsu Group. It is one of Tokyo’s most recognisable commercial towers, with 1.3m square feet of net lettable area, 48 floors above ground and five below.
The acquisition represents a rare opportunity for Brookfield to secure 100% ownership of a large-scale, high-quality office asset in central Tokyo, a market characterised by limited vacancy, constrained new supply and strong long-term tenant demand.
Ankur Gupta, Brookfield head of Asia Pacific & Middle East Real Estate and deputy real estate CIO, said: “The Dentsu office tower in Tokyo is an iconic asset located in one of the world’s strongest office markets. The investment aligns with our strategy of acquiring high-quality assets in irreplaceable locations and creating value through hands-on operational expertise. We have strong conviction and confidence in Japan where we continue to grow our presence.”
Premium office supported by robust fundamentals and a structural flight to quality in gateway markets such as Tokyo, Seoul, Sydney and Mumbai is a cornerstone of Brookfield’s real estate portfolio within Asia Pacific, he said.
Gupta added: “Japan is one of the largest and most liquid real estate markets in the world, offering both scale and stability. Office rents and occupancies have remained resilient, supported by a strong culture of working from the office and a deep, diversified corporate demand base.
“We expect to commit further capital to office across the region and apply our operational focus of managing for value, not just occupancy, while building long-term relationships with our tenants.”
Brookfield has been stepping up its presence in Japan since acquiring the Meguro Gagoen complex in Tokyo for $1.6bn (€1.3bn) in January last year.
