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Japan Prime Realty Investment Corporation to Acquire Four Assets Including Two at Grand Front Osaka; Sells Two Older Office Buildings

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Japan Prime Realty Investment Corporation to Acquire Four Assets Including Two at Grand Front Osaka; Sells Two Older Office Buildings

Japan Prime Realty Investment Corporation to Acquire Four Assets Including Two at Grand Front Osaka; Sells Two Older Office Buildings

Japan Prime Realty Investment Corporation (JPR) will acquire four properties—including two additional stakes in Grand Front Osaka, the FUNDES Kamata retail property, and the Hotel Gracery Asakusa—on November 28, 2025. The total acquisition price is JPY 31,910 million. At the same time, the REIT will dispose of two older office assets, JPR Yokohama Nihon-Odori Building and Minami-Azabu Building, for a combined JPY 9,530 million. The transactions represent a portfolio rebalancing aimed at enhancing profitability and overall asset quality.

The Grand Front Osaka (Umekita Plaza/South Building) interest is being acquired for JPY 9,200 million, and Grand Front Osaka (North Building) for JPY 8,000 million, with JPR adding 4.6% co-ownership interests in each. JPR already owns 4.9% in both assets, bringing its ownership to 9.5% after the acquisition. FUNDES Kamata, a retail property one minute from Kamata Station, will be acquired for JPY 8,010 million, and Hotel Gracery Asakusa, a select-service hotel two minutes from Asakusa Station, for JPY 6,700 million. All four assets are being acquired from Tokyo Tatemono, with closing scheduled for December 19, 2025.

The REIT’s asset manager is a wholly owned subsidiary of Tokyo Tatemono, and this acquisition leverages the sponsor pipeline. The Hotel Gracery Asakusa marks the first hotel acquired from the sponsor, introducing hospitality exposure to a portfolio primarily composed of office and retail assets. Meanwhile, the buyer of the Minami-Azabu Building is Tokyo Tatemono, reflecting a two-way asset rotation between the REIT and its sponsor.

The JPR Yokohama Nihon-Odori Building will be sold for JPY 4,430 million (appraisal value: JPY 2,480 million), and the Minami-Azabu Building for JPY 5,100 million (appraisal value: JPY 3,420 million), both at substantial premiums to appraisal. The total expected gain on sale is JPY 2,904 million. The Yokohama asset will transfer 65% on December 18, 2025, and the remaining 35% on January 23, 2026. The Minami-Azabu Building is scheduled to transfer on January 9, 2026.

Key Facts — Acquisition Properties

  • Buyer: Japan Prime Realty Investment Corporation

  • Seller: Tokyo Tatemono Co., Ltd.

  • Property Name: Grand Front Osaka (Umekita Plaza / South Building)

    • Acquisition Price: JPY 9,200 million

    • Appraisal Value: JPY 11,300 million

    • NOI Yield: 4.0%

    • Location: 4-1 Oofukacho (Umekita Plaza), 4-20 Oofukacho (South Building), Kita-ku, Osaka-shi, Osaka

    • Nearest Station: Direct access to JR Osaka Station; close to Hankyu/Hanshin Osaka-Umeda Station

    • Completion: February 2013 (Umekita Plaza); March 2013 (South Building)

    • Number of Floors: 2F / B2 (Umekita Plaza); 38F / B3 (South Building)

    • Acquired Interest: 4.6% co-ownership

  • Property Name: Grand Front Osaka (North Building)

    • Acquisition Price: JPY 8,000 million

    • Appraisal Value: JPY 9,480 million

    • NOI Yield: 4.1%

    • Location: 3-1 Oofukacho, Kita-ku, Osaka-shi, Osaka

    • Nearest Station: Direct access to JR Osaka Station

    • Completion: February 2013

    • Number of Floors: 38F / B3

    • Acquired Interest: 4.6% co-ownership

  • Property Name: FUNDES Kamata

    • Acquisition Price: JPY 8,010 million

    • Appraisal Value: JPY 8,570 million

    • NOI Yield: 3.8%

    • Location: 5-11-10 Kamata, Ota-ku, Tokyo

    • Nearest Station: JR Keihin-Tohoku Line / Tokyu Ikegami Line / Tokyu Tamagawa Line “Kamata” Station (1 min walk)

    • Completion: February 2024

    • Number of Floors: 10F

  • Property Name: Hotel Gracery Asakusa

    • Acquisition Price: JPY 6,700 million

    • Appraisal Value: JPY 7,390 million

    • NOI Yield: 4.1%

    • Location: 2-10-2 Kaminarimon, Taito-ku, Tokyo

    • Nearest Station: Toei Asakusa Line “Asakusa” Station (2 min walk); Tokyo Metro Ginza Line “Asakusa” Station (5 min walk)

    • Completion: August 2018

    • Number of Floors: 14F

    • Total Guestrooms: 125

    • Operator: Fujita Kanko Inc.

Key Facts — Disposition Properties

  • Seller: Japan Prime Realty Investment Corporation

  • Buyer: Domestic special-purpose company

  • Property Name: JPR Yokohama Nihon-Odori Building

    • Disposition Price: JPY 4,430 million

    • Appraisal Value: JPY 2,480 million

    • Expected Gain on Sale: JPY 1,703 million

    • Location: 17 Nihon-Odori, Naka-ku, Yokohama-shi, Kanagawa

    • Completion: October 1989

    • Number of Floors: 11F / B1

  • Property Name: Minami-Azabu Building

    • Disposition Price: JPY 5,100 million

    • Appraisal Value: JPY 3,420 million

    • Expected Gain on Sale: JPY 1,201 million

    • Location: 2-12-3 Minami-Azabu, Minato-ku, Tokyo

    • Completion: June 1992

    • Number of Floors: 9F

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