Jul 08 (Nikkei) - Bidding for a government-owned office property in Tokyo shows that the country's real estate market is still going strong, thanks to a weak currency and ultralow interest rates that have drawn both foreign and domestic investors eyeing healthy returns.
More than 10 companies submitted proposals to buy the government-held portion of the Otemachi Place complex, in the capital's financial district, before the deadline Thursday. The sale of the property, which was redeveloped in 2018, is being handled by Mizuho Trust & Banking. A final decision will be made in September.
While no specific monetary figures are required at this stage, the property is expected to go for around 300 billion yen ($2.2 billion) based on the location and rents in the area. It could top the Japanese record for a finished high-rise building, set by last year's estimated 300 billion yen sale of ad agency Dentsu's headquarters in Tokyo.
Many of the prospective buyers hail from outside the country, including American and Asian investment funds. Because borrowing costs are so low in Japan, investing in real estate may be more lucrative for them in Tokyo than in Singapore or Hong Kong. ...continue reading
Source: ANNnewsCH
