Mitsubishi Heavy Industries Building
Mitsubishi Heavy Industries (MHI) announced it will dispose of its headquarters building, the Mitsubishi Heavy Industries Building, in Konan, Minato-ku, Tokyo. The buyers are REIT Nippon Building Fund (NBF) and a domestic institutional investor. The total sale price amounts to 60.5 billion yen [$710 million].
MHI plans to transfer the ownership of the property by September. MHI will lease and continue to use the building after the sale.
The building is located a five-minute walk from JR Shinagawa Station in Shinagawa Grand Commons, a redevelopment area connected to the station’s Konan exit (East exit) via a pedestrian deck. It is registered as a single building together with the Shinagawa Grand Central Tower, which flanks it on the north side.
The Mitsubishi Heavy Industries Building part, which was completed in 2003, has 29 floors above ground and three below with 67,123 m2 of total floor space. As of February 2011, the building was fully occupied by 11 retail tenants including Tully’s Coffee and convenience store FamilyMart, in addition to MHI.
NBF will acquire quasi-joint ownership of 60% of the property’s trust beneficiary rights for 36.3 billion yen. The expected net operating income (NOI) is 1.57 billion yen and based on this the cap rate against the acquisition price is 4.3%.
The name of the institutional investor that will acquire the remaining 40% ownership in the trust beneficiary rights has not been revealed.
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[Outline of Dealing]
Name: Mitsubishi Heavy Industries Building
Price: 60.5 billion yen [$710 million]
Rights: Trust beneficiary rights
Location: 2-16-5 Konan, Minato-ku, Tokyo (residence indication)
Access: 5-minute walk from JR Shinagawa station
Land area: 6,181.47m2
Total floor space: 67,123.39m2
Rentable floor space: 59,401.63m2
Structure: SRC, RC, S
Stories (above/underground): 29/3
Completion: 2003
Dealing period: by September 2011 (handover)
