DEGI International makes first investment in Japan (JP/DE)
Thursday 4 September 2008
DEGI, part of Aberdeen Property Investors, has completed its first investment in Japan by signing the sales contract for the fully let retail property La Porte Shinsaibashi in Osaka. The property, purchased indirectly through a real estate company for €90 million, will be added to the DEGI International open-ended property fund, which focuses on commercial properties worldwide.
The seller is a special purpose company, invested in an AIG Global Real Estate sponsored fund. DEGI has been advised by the institutional transaction team of CB Richard Ellis Tokyo.
“This investment marks our entry into Japan whilst increasing our exposure to the Asian property market. Our aim is to make further acquisitions in Japan and to build a diversified property portfolio that provides a stable basis for our involvement in Asia,” comments Malcolm Morgan, managing director at DEGI responsible for property acquisitions.
“We also plan to make investments in Asia’s dynamic growth markets, such as China and Singapore, where we see attractive opportunities for property investors. Currently, we are identifying promising acquisitions with the aim of building a significant Asian portfolio,” stresses Morgan.
Completed in December 2007, the building is situated in Osaka’s most prominent retail location, the Shinsaibashi quarter. Osaka is the second largest retail market in Japan behind Tokyo, in terms of both size and turnover. It is also the second largest city in Japan, behind Tokyo, in terms of GDP and the third largest in terms of population with 2.6 million inhabitants.
La Porte Shinsaibashi comprises approximately 3,900 m² of gross floor area over two ground floors and eight upper stories. The space is let to 6 firms on long-term leases including the flagship store of the Spanish fashion chain Zara, to whom about 42% of the space has been let, and the restaurant chain Barbacoa, which is exceptionally popular in Japan.
This latest acquisition in Japan is DEGI International’s second investment in Asia, having made an initial investment in South Korea in 2005. In total, the two buildings have a lettable area of approximately 19,000 m², with a total value of around €130 million. Following this new investment in Osaka, DEGI International now has 5% of its property assets in Asia.
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Germany