Credit Suisse Group AG is predicting prices for prime Tokyo office space may rise 10 percent this year as a Japanese real estate investment trust refinanced bank debt in an agreement that means it will get paid to borrow.
GLP J-REIT said in a statement last week it agreed to swap floating rates for a fixed cost with Nomura Securities Co. on about 5.3 billion yen ($46.6 million) of debt. The REIT will receive about 480,000 yen a year net for borrowing the funds, a rate of minus 0.009 percent, the statement shows. Credit Suisse said higher-rated property companies “could well obtain negative interest rate terms” when refinancing debt through such transactions as well.
