Japan Prime Realty Investment Corporation signed a contract on October 16, 2026 to buy co-ownership interests in two Otemachi office towers, the JA Building and Keidanren Kaikan, for ¥32.8bn. Settlement is scheduled for October 23, so the deal is contracted, not closed.
What the REIT is buying
The REIT takes a 12.1% co-ownership share of the land and a 22.5% sectional-ownership share of the building. It is not buying either tower outright. The seller, which owns 100% of the REIT's asset manager and held 3.03% of the REIT's units at the end of the June 2026 period, needed prior approval from the REIT's board as an interested party, and the notice says it was obtained.
The economics
The price is below the ¥36.1bn appraisal value as of June 30, 2026. The disclosed NOI yield is 3.3%, or 3.0% after assumed depreciation. NOI is the appraiser's net operating income, and the yield divides it by the purchase price, so these are property yields, not returns to unitholders. Funding comes from borrowings and cash, and the loan details will be announced once set.
Occupancy is 96.6% across 55 sub-tenants under a pass-through master lease. Annual rent and deposits are undisclosed because co-owners have not consented to release them.
The rent-gap bet
The REIT's case is reversion. A supplementary presentation says all leases are fixed-term, with 2.6 years average remaining, and that the property's gap to market rent is well above the portfolio average of 14.9% at the end of June 2026. It cites a 27.1% rise in Otemachi-Marunouchi market rents since the second quarter of 2024, based on CBRE data compiled by the asset manager. The plan is to capture the gap as fixed-term leases are renewed.
The REIT says the effect on results is minor and leaves its forecasts for the periods ending December 2026 and June 2027 unchanged.