Nomura Real Estate to Double REIT Assets With Deals Delayed by Earthquake

Nomura Real Estate Holdings Inc. (3231), which set up Japan’s first private real estate investment trust, is set to complete acquisitions that will double the size of its REIT after a six-month delay following the earthquake last year.

The company will add eight buildings to its private REIT, which targets investors including pension funds. The properties will boost the size of the trust to 40 billion yen ($490 million) when the transactions close in mid-March, said Atsushi Ogata, senior managing director and head of the fund management division at Nomura Real Estate Asset Management Co., a Nomura Real Estate unit.

The acquisitions are the first for the private REIT since it was first set up in November 2010. The purchase of the properties, which consist of two office buildings, five rental apartments and a warehouse in Tokyo, signals concerns after the March 11 earthquake have eased.

“We thought it would be difficult to expand our private REIT after the earthquake, so we decided to hold off the plan,” Ogata said in a phone interview in Tokyo today. “Investor interest has returned.”

Other Japanese property funds are also planning acquisitions. Mitsui Fudosan Co. (8801), the nation’s biggest developer by sales, said yesterday it set up a private REIT with 72.7 billion yen. Mitsubishi Estate Co. the second-largest developer by sales, also manages a private REIT.

To contact the reporters on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net; Katsuyo Kuwako in Tokyo at kkuwako@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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