Nippon REIT Investment (TYO:3296) has decided to transfer its trust beneficiary interest in Tsukiji Front, an office building in Chuo-ku, Tokyo, for a scheduled transfer price of 1.25 billion yen, effective July 31, according to a Tokyo bourse filing on Thursday.
The decision to sell the property, which is over 30 years old and has an appraisal value of 1.11 billion yen as of December 2025, was driven by expectations of rising capital expenditure needs and limited growth potential due to its relatively small standard floor area.
The REIT determined that terminating management of the property at this time and realising unrealised gains would contribute to the maximisation of unitholder value.
The company plans to use the gain on sale as a source of funds for distributions, reducing the previously assumed reversal of reserve for the reduction entry of 369 million yen while maintaining the forecasted distribution per unit at 2,250 yen for the fiscal period ending Dec. 31, 2026.