EGW Buys Tokyo Tower for $265 Million With Korean Investor FundsBy and
EGW Asset Management Inc., which manages about 200 billion yen ($1.8 billion) in assets, said it has acquired an office building in central Tokyo for about 30 billion yen.
The asset manager bought Shinagawa Seaside TS Tower, a 23-story office building, on behalf of an unidentified South Korean institutional investor who is investing in Japan’s real estate market for the first time, the company said in an emailed statement.
Takeda Pharmaceutical Co. is the seller of the tower, whose tenants include Sony Mobile Communications Inc., according to the company’s website. A spokesman for Takeda said the company has been considering selling the building.
Property prices in Tokyo have been on the rise as investors seek stable returns amid low interest rates. The average capitalization rate for office buildings in Tokyo has stayed near a record low of 4.4 percent in the past two years, according to Real Capital Analytics Inc. A low capitalization rate, which is a property’s net income divided by its purchase price, is a signal that usually presages an increase in prices.