The Kansai Electric Power Co. and Tokyo Gas have jointly acquired the trust beneficiary rights to Shiba Park Building in central Tokyo on March 20. The acquisition price has not been made public, but insiders suggest a price somewhere in the range of 150 billion Yen (approx. 1.4 billion USD).
Shiba Park Building, a landmark office building in central Tokyo, is being offered for sale again, with insiders suggesting it could sell for more than 160 billion Yen (1.3 billion USD). *Update: Several months later, the owners decided to take advantage of low borrowing rates to refinance rather than sell the building, with the net rental income providing a more attractive return than disposal of the asset.
The 14-storey building has a total floor area of 103,000 sqm (1.1 million sq.ft), of which 83,000 sqm is leasable space. It was built in 1982 by Shuwa Corporation, a real estate developer that invested heavily in US properties during Japan’s bubble economy in the late 1980s. Shuwa was also the developer of numerous ‘Shuwa Residence’ vintage apartment buildings built across Tokyo and Saitama in the 1960s and 1970s.