Acquisition of Tokyo office development
AXA Investment Managers - Real Assets completes acquisition of Tokyo office development and secures pre-let with global flexible workspace provider
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real asset investments and the leading(1) real estate portfolio and asset manager in Europe, announces that it has acquired, on behalf of clients and as part of its global build-to-core strategy, an office development opportunity in Tokyo, Japan. AXA IM - Real Assets has undertaken this transaction as the majority shareholder in partnership with the Hong Kong based company, Alyssa Advisors, a privately held real estate investment and advisory firm primarily active in the Asia Pacific region.
The consortium has simultaneously agreed a long-term pre-let for the whole building with Regus Group (IWG), the world’s largest provider of flexible workspace solutions(2), commencing on completion of the project which is anticipated in early 2021.
Situated in Roppongi, a major Tokyo Central Business District, the property benefits from excellent transport connectivity, with three subway stations in close proximity, including Roppongi Station, which is less than one-minute walk.
Demolition of the existing vacant building is expected to commence in H1 2019. The completed development will deliver circa 3,500 sqm of Grade A office space, comprising flexible floor plates across nine floors.
PAG Investment Management Ltd (“PAG”), one of Asia’s largest alternative investment management firms, will act as the development manager.
Laurent Jacquemin, Head of Asia Pacific at AXA IM - Real Assets, commented: “The acquisition of a prime office development opportunity demonstrates both the strength of our growing footprint in Tokyo, as well as our on the ground expertise, in what is an increasingly key market for us. The global shift towards flexible working is accelerating and we continue to identify ways to be real estate pioneers in this field, for the benefit of our investors. At the same time, securing a pre-let with a leading global business is a significant achievement, one that will support the reduction of the leasing risks associated with a new development.”
“Working with PAG Investment Management, with whom we have a growing relationship, continues our strategy of partnering with best-in-class local real estate companies and aims to put us in a strong position, in line with our build-to-core strategy, to outperform comparable existing products in Tokyo.”
Chedli Boujellabia, Founder and Managing Director of Alyssa Advisors, commented: “We are pleased to have teamed up with a partner of the calibre of AXA IM Real Assets for our first principal investment transaction in Japan. The combination of prime location, reliable construction environment and the long lease in place made it an exciting transaction for long term investors”.
Shingo Nishioka, Japan Country Manager for Regus Group, added: “We are very pleased to have entered into an agreement with AXA IM - Real Assets and Alyssa Advisors to launch our new business centre “Spaces”. Roppongi is a popular business location globally and opening Spaces Roppongi will offer a great business opportunity to us”.
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1 Source: INREV/ANREV Fund Manager Survey – May 2018 – in terms of assets under management
AXA Investment Managers - Real Assets
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Note to editors
AXA Investment Managers is an active, long-term, global, multi-asset investor. We work with clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. With approximately €740 billion(1) in assets under management as at end of September 2018, AXA IM employs over 2,390 employees around the world and operates out of 30 offices across 21 countries.
AXA Investment Managers - Real Assets has €79 billion in assets under management, including €59.8 billion in direct property & infrastructure and €15.6 billion in real asset finance as of end of September 2018(2). We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(3), and one of the largest worldwide. Our teams have been managing funds and mandates for over 30 years and comprise over 600 people in 14 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.
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1 Source: AXA IM unaudited data
2 Source: AXA IM - Real Assets’ unaudited data
3 Source: INREV/ANREV Fund Manager Survey – May 2018 in terms of assets under management
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