St Martins buys luxury residential block in Tokyo, Japan
6 February 2009
First acquisition in Asian market to trigger further investment in the region over the long term.
International property investment and development company St Martins has made its first move into the Asian market by acquiring a luxury 27-storey high rise residential tower in central Tokyo for JPY 13 billion (£105 million), with a net yield above the historic average for such a quality property.
The Lietocourt Arx Tower is centrally located in Minato, Chuo-Ku, adjacent to Nihonbashi and Ginza, Tokyo's well-established business and retail district. The building was completed in February 2007, and comprises 281 serviced apartments totalling over 29,701 sq m. The vendor is a fund managed by KK daVinci Advisors (KK daVinci), one of Japan's major property fund managers. St Martins had spent over twelve months reviewing the market, and a number of opportunities, before deciding that the pricing and long term prospects for Arx Tower were attractive.
The acquisition was partially financed by a bond issue to The Tokyo Star Bank Limited, arranged through the Real Estate Finance desk of Nikko Citigroup Limited.
Nigel Brown, Managing Director at St Martins, said: "This is the first of what we anticipate will be a number of investments in the region, subject to pricing and timing."
He continued: "Whilst we have been considering investment opportunities throughout Asia, including China, Hong Kong, Singapore Vietnam and Australia, our future Asian strategy is likely to focus on Japan, China and Australia. We are waiting for the right opportunities at the right prices that will offer potential for long term performance and represent properties that aren't normally seen coming to the market."
"Whilst we will continue to review the markets, and specific opportunities, we consider that it may be later in the year before similar quality assets become available at attractive prices and any signs of recovery are seen in the markets. We anticipate a correction in the pricing in China to make investments more attractive in comparison for instance to yields now available in the UK and other developed markets. St Martins will also consider landmark opportunities in the major cities in Continental Europe and the UK when the markets become more stable."
A spokesperson for KK daVinci said "the company is pleased to be working with St. Martins and is looking forward to a lasting and mutually beneficial relationship." KK daVinci Advisors is a wholly-owned subsidiary of KK daVinci Holdings (4314), which was founded by Osamu "Sam" Kaneko in 1998 and is listed on the Hercules Exchange.
St Martins was established in 1924 and has grown into one of the world's leading property companies with investments in the UK, Europe and Australia. In 2008 the company acquired the Willis Building in the City of London and has just completed the development of a 200,000 sq ft office building at 150 Cheapside, adjacent to St Paul's Cathedral, also in the City of London.
ENDS
For further information, please contact:
Richard Stocks, FD Tamesis on behalf of St Martins
Tel: +44 (0)20 7269 9355
Mobile: +44 (0)7951 328475
Email: richard.stocks@fd.com