GreenOak Real Estate LP made the news today with its sale of the Tokyo-based Aoyama Building. The new owners are Gaw Capital, according to Bloomberg. Insiders of the deal had mentioned that the private equity firm is paying around $800 million to $850 million to acquire the 13-story office tower.
Gaw Capital, who is paying the said amount, has asked analysts not to divulge more details as the transaction is still being considered 'private.' The firm paid the said amount through a separately managed client account, which included a Korean pension fund, according to insiders with deep knowledge about how the property was bought.
The New York-based GreenOak bought out the building in which their Japanese headquarters conducts business. This also meant that its equity investment has been multiplied by three with the sale. GreenOak has recently renovated the building, which bought a 40 percent raise in rents to the previous landlord. Currently, the building also houses the country's initial Aston Martin dealership.
The Aoyama Building, Gaw Capital Partners' newest acquisition, is a 47-year old structure with 13-stories. Mingtiandi reported that the closing of Gaw's $1.3 billion Gateway Real Estate Fund IV in October was instrumental in allowing them to purchase the property. Goodwin Gaw and his associates, together with partners, also managed to secure four major acquisitions other than the GreenOak account with an estimated $3.2 billion.
The purchase allows Gaw Capital Partners to establish a 'foothold' in Tokyo. It also marks the very first presence of the firm in Tokyo, although they already had a transaction in Japan through their $760 million, 2017 purchase of the Minatomirai Center Building in Yokohama. The fund managers are also proud owners of an extensive portfolio containing five properties in the Japan area, including the Minato ward.
GreenOak's disposal of the said asset follows just three months after the company, founded by former Morgan Stanley executives, sold a 56 percent equity stake to Canada's Bentall Kennedy. The transaction was agreed upon after the merger with Sun Life's real estate investment subsidiary went through.
The Tokyo purchase was one that the firm couldn't pass up, seeing as the low vacancy rates as well as climbing rents made it hard to resist. Overall vacancy rates in the area are expected to be at 3 percent and below by year's end, one of the lowest for a major Asian city.
