GIC buying 43% stake in Tokyo tower

Singapore sovereign wealth fund GIC will acquire a 43 per cent stake in Shinjuku Maynds Tower, a large-scale Grade A office property in Tokyo, from Daiwa Office Investment Corporation for 62.5 billion yen (S$748 million).

Daiwa Office Investment Corporation will retain the same stake as that of GIC, with the remaining stake held by a domestic company, according to a press statement.

Shinjuku Maynds Tower is a 34-storey office building located in the newly redeveloped area south of Shinjuku Station, offering access to the main JR Shinjuku Station as well as direct underground access to multiple subway lines.

GIC Real Estate chief investment officer Lee Kok Sun said: "This investment in Shinjuku Maynds Tower is a unique opportunity to acquire a sizeable and stable income-producing asset, well positioned in the market to capture its future growth potential."

He added that GIC has been investing in Japan for nearly 30 years and "remains confident" in the country's continued growth in the long run, and will continue to pursue opportunities to invest in quality assets with steady cash flows.

Mr Akira Yamanouchi, president and representative director of Daiwa Real Estate Asset Management, said the two parties - Daiwa Office Investment Corporation and GIC - had agreed on joint management of the property.

Shinjuku Maynds Tower is a 34-storey office building in the newly redeveloped area south of Shinjuku Station, offering access to the main station and underground access to multiple subway lines.
Shinjuku Maynds Tower is a 34-storey office building in the newly redeveloped area south of Shinjuku Station, offering access to the main station and underground access to multiple subway lines. PHOTO: DAIWA REAL ESTATE ASSET MANAGEMENT

"GIC is one of the excellent global investors that commit to the real estate market in Japan on a mid-to long-term basis. I believe it is one of the best business partners to pursue common goals," he said, adding that they will continue to maximise the asset's value together.

GIC has more thanUS$100 billion (S$135 billion) in assets under management, with investments in more than 40 countries across a wide range of asset classes, including real estate, private equity, equities and fixed income.

A version of this article appeared in the print edition of The Straits Times on December 20, 2017, with the headline 'GIC buying 43% stake in Tokyo tower'. Print Edition | Subscribe