AXA Real Estate Acquires Mixed-Use Office Asset in Central Tokyo

By Balazs Szekely, Associate Editor

Tokyo–AXA Real Estate Investment Managers has recently announced the acquisition of the Nishi Shinjuku KF Building in central Tokyo. The Tokyo Office Property Fund (TOP) and the Tokyo Office Real Estate Investment Fund completed the transaction. The acquisition represents the final transaction for TOP, which has now deployed all of its capital commitments and completed its investment period.

Nishi Shinjuku KF Building is a high-quality office asset of over 106,000 square feet located in central Tokyo’s Nishi-Shinjuku district. The six-story office building also includes 10 residential units, and the office space is currently fully occupied by eight tenants of diversified industries. Completion of this acquisition brings the Tokyo Office Property Fund’s total assets under management to $190.82 million.

Hidetoshi Ono, head of Japan Core Fund at AXA Real Estate, considers this transaction a significant milestone. “It marks our success in investing the remaining equity committed to the Fund before the end of its investment period, at the same time as continuing to be able to provide our clients with exposure to core/core plus mid-sized office assets with a diverse mix of tenants that deliver secure and steady income streams with the potential for capital appreciation,” he says.

Launched in 2012, TOP is a fund managed by AXA Real Estate and asset management of the property portfolio is undertaken by Sumitomo Mitsui Trust Real Estate Investment Management Co. Ltd., a wholly owned subsidiary of the largest banking groups in Japan, Sumitomo Mitsui Trust Bank, Ltd. The same subsidiary manages the Tokyo Office Real Estate Investment Fund as well.

Photo courtesy of Morio via Wikimedia Commons