PGIM Real Estate has sold the Toyobo office building in Japan’s second-largest city to an unnamed buyer for an undisclosed sum.

On behalf of its institutional investors, PGIM Real Estate acquired the office block in Osaka in October 2017 from Toyobo Corporation, reportedly for ¥20bn (€161m).

After acquisition, PGIM Real Estate implemented a capital improvement programme to modernise the 40-year-old building and secured a long-term lease with Toyobo to continue occupying about 60% of the building.

Morgan Laughlin, PGIM Real Estate’s head of Japan, said: “The improved performance of this asset, as well as the strong underlying fundamentals in the Osaka market, allowed us to swiftly execute on the disposition of this asset during a period of broader economic uncertainty brought on by COVID-19.”

Laughlin said the sale process for the asset was “competitive” and delivered “a very positive end result for our investors”.

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