Japan Metropolitan Fund Investment Corp. to Acquire Retail Property in Tokorozawa’s Kotesashi Area

Japan Metropolitan Fund Investment Corp. announced on March 31, 2026, that it had decided to acquire the retail property tentatively named Machinoma Kotesashi in Tokorozawa, Saitama Prefecture. The planned acquisition price is JPY 4,240 million, and the asset is scheduled to be acquired in February 2027 following its completion in November 2026. The property is expected to generate an NOI yield of 5.7%.

The property is located a three-minute walk from Kotesashi Station on the Seibu Ikebukuro Line and is being developed on the former site of the Seiyu Kotesashi store, which closed in October 2023 after 42 years of operation. The asset will be a three-story steel-framed building with a Gross Floor Area of approximately 2,193 tsubo (approx. 78,034 sq. ft.). Seiyu, which operated at the site prior to its closure, will re-open on the first floor under a long-term lease, while the second floor is planned to house retail, service, pharmacy and clinic tenants. Next door, a large-scale tower condominium with 659 units is slated for completion in December 2027, with the project advancing as an integrated residential and retail redevelopment. In the future, the residential tower and the retail property are planned to be connected by a covered walkway to secure pedestrian access to the shopping center.

This transaction is a collaboration between current sponsor KKR and former sponsor Mitsubishi Corp. Group. Even after the sponsor change in 2022, the pipeline under which the investment corporation acquires properties developed by Mitsubishi Corp.-UBS Realty Development Co., Ltd. (MCUD) has been maintained. For MCUD’s Machinoma brand, this project marks the second development following Machinoma Omori, which opened in 2018, and further expands the portfolio of neighborhood retail assets.

Key Facts

• Property Name:

  (Tentative) Machinoma Kotesashi

• Buyer:

  Japan Metropolitan Fund Investment Corp.

• Seller:

  Mitsubishi Corporation Urban Development Inc. (80%), Haseko Corporation (20%)

• Planned Acquisition Price:

  JPY 4,240 million

• Appraised Value:

  JPY 5,600 million

• Location:

  25-37 and others, 1-chome Kotesashicho, Tokorozawa, Saitama Prefecture

• Nearest Station:

  Kotesashi Station on the Seibu Ikebukuro Line, 3-minute walk

• Completion:

  November 2026

• Planned Acquisition Date:

  February 2027

• Number of Floors:

  3F

• Gross Floor Area:

  approx. 2,193 tsubo (approx. 78,034 sq. ft.)

• Total Leasable Area:

  approx. 1,698 tsubo (approx. 60,420 sq. ft.)

• Major Tenant:

  Seiyu

• NOI Yield:

  5.7%

• Cap Rate:

  4.0%