Nippon REIT Investment (TYO:3296) has agreed to acquire WORK VILLA MYJ Kanda, a new office building in Tokyo's Chiyoda Ward, for 8.4 billion yen, with the transaction scheduled to close on Jan. 15, 2027.
To partially fund the acquisition, Nippon REIT secured 2.55 billion yen in floating-rate borrowings from four lenders, including Mizuho Bank and Resona Bank, with maturities ranging from 2030 to 2032, according to a bourse filing on Thursday.
The acquisition is part of the REIT's asset replacement strategy, selling older properties and acquiring newer, inflation-resistant assets to enhance portfolio quality and cash flow.
The transaction involves sellers Sumitomo Corp.(TYO:8053) and an undisclosed domestic firm, with the property's site held under a leasehold arrangement.
The 14-story property is fully occupied with 10 tenants and offers gross annual rental income of 406 million yen.