Brookfield Asset Management has acquired an office building in the Shiodome district of central Tokyo, from a consortium of Japanese investors for an undisclosed price.
Completed in 2002, the 213-metre skyscraper is the global headquarters of advertising and communications company Dentsu Group. It is one of Tokyo’s most recognisable commercial towers, with 1.3 million square feet of net lettable area, 48 floors above ground and five below ground.
Brookfield described the deal as a “rare opportunity” to secure 100% ownership of a large-scale, high-quality office asset in central Tokyo. The asset manager said that the market is characterised by limited vacancy, constrained new supply and strong long-term tenant demand.
Ankur Gupta, Brookfield head of Asia Pacific & Middle East real estate and deputy real estate chief investment officer, said in a media release: “The Dentsu office tower in Tokyo is an iconic asset located in one of the world’s strongest office markets. The investment aligns with our strategy of acquiring high-quality assets in irreplaceable locations and creating value through hands-on operational expertise. We have strong conviction and confidence in Japan where we continue to grow our presence.”
New York-based Gupta added: “Japan is one of the largest and most liquid real estate markets in the world, offering both scale and stability. Office rents and occupancies have remained resilient, supported by a strong culture of working from the office and a deep, diversified corporate demand base.”
Looking forward, he said: “We expect to commit further capital to office across the region and apply our operational focus of managing for value, not just occupancy, while building long-term relationships with our tenants.”
The asset manager is keen to expand its regional property footprint over the next five years.
