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TH Real Estate completes debut investment in Japan

Ginza

TH Real Estate has completed the purchase of a multi-use asset in Ginza, Tokyo, representing its debut investment in the Japanese market.

TH Real Estate has acquired the Ginza 1 Chome Building, a 4,539 sq m (c.49,000 sq ft)  retail and office property from the Standard Life Investments Global Real Estate Fund for c.US$82m, on behalf of the TIAA General Account.

The modern, 13-storey building, is located in the heart of Tokyo’s CBD in Ginza, Chuo Ward with superior access to 5 train stations all within 8 minutes walking distance from the property served by four subways and one railway. The property is comprised of nine floors of retail and four floors of office with basement parking. The property is multi-let to ten diversified tenants, anchored by a Kimono shop, signed for a fixed long dated lease, representing its flagship Ginza store.

The investment has been led by Shu Watanabe, Director of capital transactions for Asia, who joined TH Real Estate in June this year.

Shu Watanabe, Director of Capital Transactions, Asia, TH Real Estate, commented: 'The acquisition fits our strategy of owning well-located, prime properties that cater to today’s occupier needs. The Property is strategically located on the corner site fronting Showa-dori, a major arterial road in Ginza, providing high traffic and visibility for retail tenants while its close proximity to Nihonbashi CBD on the north and Shiodome CBD on the south draws strong demand for office tenants, underpinning our expectations for stable cash flow. We also believe that Tokyo’s demographic fundamentals make it a defensive long term investment, supported by a highly developed social infrastructure and mature economy.'

Chris Reilly, Managing Director, Asia Pacific, TH Real Estate added: 'We are excited to complete our debut investment into Japan, a region that we believe holds further strong investment potential. As a business, we are committed to growing our business across the Asia-Pacific region. This latest investment complements our existing Asia-Pacific portfolio and aligns with our strategy of investing across the world’s most attractive real estate markets, identifying tomorrow’s ‘winning’ cities.'

In a recent research report, TH Real Estate assessed the state of Japan’s economy and outlook for real estate opportunities, highlighting a number of fundamental justifications for investing in Tokyo real estate, including it being a core and highly liquid institutional market. It also cited that there is a strong safe guard to pricing, in the form of supportive lending policy and a robust capital market with JREIT interests and appetite.

 

TH Real Estate is a name under which Henderson Real Estate Singapore Private Limited provides investment products and fund management services. Issued by Henderson Real Estate Singapore Private (Company no. 201322659M), (incorporated and registered in Singapore with registered office at One George Street #14-05 Singapore 049145) which is authorised and regulated by the Monetary Authority of Singapore. Telephone calls may be recorded and monitored. Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. The TIAA General Account is an insurance company account and does not present an investment return, and is not available to investors. TH Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). TH Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or TIAA-CREF Alternatives Advisors, LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Teachers Personal Investors Services, Inc., member FINRA. C34559

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