Norges Bank Investment Management (NBIM) is investing JPY79.7bn (€667m) in a Tokyo office complex, linking up with a new local partner - Mitsubishi Estate - to do the deal.
The asset management arm of Norway’s central bank, which manages the NOK10.2tn (€984bn) Government Pension Global (GPFG), announced it had agreed to buy a 39.9% stake in part of the Otemachi Park Building in the Japanese capital and would finance 12.6% of its purchase with a bank loan.
Mitsubishi Estate, which NBIM is working with for the first time as a local partner, currently owns the office complex building entirely and intends to separate its ownership into two strata titles of 41.8% and 58.2%, according to the announcement.
The Japanese firm will retain full ownership of the former title, and sell part of the latter, NBIM said.
The Norwegian investor has agreed to pay JPY79.7bn for a 39.9% interest in the strata title for sale, valuing that title at JPY199.7bn, it said.
Meanwhile, two Mitsubishi Estate-affiliated companies - Nippon Open Ended Real Estate Investment Corporation and Japan Real Estate Investment Corporation - will each acquire 5% of that same title, and Mitsubishi Estate itself will retain the remaining 50.1%, according to NBIM.
Asset and property management of the building will be performed by Mitsubishi Estate on behalf of the joint venture, it said.
Located in Otemachi, in Tokyo’s Marunouchi office submarket, the property has 72,744sqm of office space, 1,544sqm of retail and 14,140sqm of serviced apartments, said NBIM.
According to NBIM’s latest annual report, Tokyo-located assets make up just 1.8% of the GPFG’s unlisted office and retail assets.