GIC buys office space in Tokyo

SINGAPORE — Singapore sovereign wealth fund GIC has acquired an office component within a building in central Tokyo, estimated to cost about 170 billion yen (S$2 billion).

The 32-storey high Pacific Century Place Marunouchi was acquired through a GIC affiliate, said GIC in a statement today (Oct 21).

GIC’s purchase covers all of the office space from levels 8 to 31, but excludes other components within the building such as the Four Seasons Hotel.

The building is located next to the JR Tokyo train station and has nearly 39,000sqm of rentable space.

GIC Real Estate’s Co-Head of Asia Mr Lee Kok Sun said: “As a long-term value investor, GIC believes Pacific Century Place Marunouchi gives us a combination of stable income and the potential for capital appreciation over the long term.”

“The attractions of the property are its prime location, superior building quality, and quality tenants.

“This investment demonstrates our confidence in Japan and specifically, the Tokyo office market over the long run,” he said.

GIC did not reveal the cost of the acquisition. However, a Reuters report from August this year estimated Pacific Century Place Marunouchi’s valuation at 170 billion yen.

GIC has been gradually building up its property portfolio over the last year. Earlier this month, the sovereign fund acquired a 50 percent stake in an Italian shopping centre. In January, it purchased the headquarters of Time Warner in New York City’s Columbus Circle together with the Abu Dhabi Investment Authority.

Late last year, they also took up stakes in an office complex in London as well as an office tower in the centre of Jakarta’s business district.