Ichigo Office REIT To Sell Four Central Tokyo Office Properties to Sumitomo Corp. for JPY 14.22 Billion
Ichigo Office REIT Investment Corp. will sell four office properties it owns in central Tokyo to Sumitomo Corp. The total planned sale price is JPY 14.22 billion, with delivery scheduled for July 17, 2026.
The properties to be sold are Ichigo Hanzomon Building in Hayabusacho, Chiyoda Ward, with a planned sale price of JPY 4.21 billion; Ichigo Nishi-Ikebukuro Building in Ikebukuro, Toshima Ward, for JPY 1.16 billion; Ichigo Kudan Building in Kanda-Jimbocho, Chiyoda Ward, for JPY 6.2 billion; and Ichigo Ningyocho Building in Nihonbashi-Horidomecho, Chuo Ward, for JPY 2.65 billion. All are midsize office buildings completed from the 1980s to the early 1990s. The properties have maintained stable operations supported by central Tokyo locations, but more than 35 years have passed since completion, and lifecycle costs, including repair expenses and capital expenditures, are expected to increase.
The REIT is pursuing asset recycling based on the composition and profitability of its portfolio, as well as the stability and outlook for each property’s cash flow, while also working to enhance the value of its existing real estate. For this sale, the four properties had a total appraisal value of JPY 8.98 billion. After receiving an offer at more than 1.5 times the latest appraisal value and more than twice the estimated book value, the REIT made a comprehensive decision to sell. It expects to record a gain on sale of approximately JPY 5.866 billion.
The buyer, Sumitomo Corp., operates the PREX midsize office brand and the WORK VILLA series, which renovates existing office buildings. The company has continued to make moves to leverage existing office stock in central Tokyo, including acquiring Akasaka Bando Building, with a Gross Floor Area of approximately 1,247 tsubo (approx. 44,400 sq. ft.), in December 2024, and Takara Building in Kanda, with a Gross Floor Area of approximately 874 tsubo (approx. 31,100 sq. ft.), in July 2025. （see related article:Sumitomo Corporation Acquires Takara Building in Kanda, Tokyo）This acquisition is also believed to be aimed at securing stable income in the tight central Tokyo midsize office market while allowing for future value-add potential.
Key Facts
- Seller: Ichigo Office REIT Investment Corp.
- Buyer: Sumitomo Corp.
- Total Planned Sale Price: JPY 14.22 billion
- Total Appraisal Value: JPY 8.98 billion
- Contract Date: June 10, 2026
- Scheduled Delivery and Payment Date: July 17, 2026
- Ichigo Hanzomon Building
- Location: 2-19 Hayabusacho, Chiyoda Ward, Tokyo
- Nearest Station: One-minute walk from Hanzomon Station on the Tokyo Metro Hanzomon Line
- Planned Sale Price: JPY 4.21 billion
- Estimated Book Value: JPY 1.527 billion
- Appraisal Value: JPY 2.23 billion as of Oct. 31, 2025, by Tanizawa Sogo Appraisal
- Gain/Loss on Sale: JPY 2.171 billion
- Completion: January 1991
- Number of Floors: 8F / B1, steel-framed reinforced concrete construction
- Area: Gross Floor Area of approximately 759 tsubo (approx. 27,000 sq. ft.)
- Number of Tenants: 4 as of April 30, 2026
- Occupancy: 79.4% as of April 30, 2026
- Ichigo Nishi-Ikebukuro Building
- Location: 2-53-7 Ikebukuro, Toshima Ward, Tokyo
- Nearest Station: Four-minute walk from Ikebukuro Station on JR lines, Tokyo Metro lines, the Seibu Ikebukuro Line and the Tobu Tojo Line
- Planned Sale Price: JPY 1.16 billion
- Estimated Book Value: JPY 569 million
- Appraisal Value: JPY 1.07 billion as of Oct. 31, 2025, by Japan Real Estate Institute
- Gain/Loss on Sale: JPY 470 million
- Completion: November 1988
- Number of Floors: 9F / B1, steel-framed reinforced concrete construction
- Area: Gross Floor Area of approximately 431 tsubo (approx. 15,300 sq. ft.)
- Number of Tenants: 1 as of April 30, 2026
- Occupancy: 100% as of April 30, 2026
- Ichigo Kudan Building
- Location: 2-38-1 Kanda-Jimbocho, Chiyoda Ward, Tokyo, and other parcels
- Nearest Station: Three-minute walk from Jimbocho Station on the Tokyo Metro Hanzomon Line, Toei Mita Line and Toei Shinjuku Line; five-minute walk from Kudanshita Station on the Tokyo Metro Tozai and Hanzomon lines and Toei Shinjuku Line
- Planned Sale Price: JPY 6.2 billion
- Estimated Book Value: JPY 3.267 billion
- Appraisal Value: JPY 3.75 billion as of Oct. 31, 2025, by Daiwa Real Estate Appraisal
- Gain/Loss on Sale: JPY 2.33 billion
- Completion: May 1989, with an extension completed in August 1990
- Number of Floors: 8F / B2, steel-frame and steel-framed reinforced concrete construction
- Area: Gross Floor Area of approximately 1,496 tsubo (approx. 53,200 sq. ft.)
- Number of Tenants: 10 as of April 30, 2026
- Occupancy: 100% as of April 30, 2026
- Ichigo Ningyocho Building
- Location: 1-10-14 Nihonbashi-Horidomecho, Chuo Ward, Tokyo
- Nearest Station: Four-minute walk from Ningyocho Station on the Tokyo Metro Hibiya Line and Toei Asakusa Line; four-minute walk from Kodemmacho Station on the Tokyo Metro Hibiya Line
- Planned Sale Price: JPY 2.65 billion
- Estimated Book Value: JPY 1.511 billion
- Appraisal Value: JPY 1.93 billion as of Oct. 31, 2025, by Tanizawa Sogo Appraisal
- Gain/Loss on Sale: JPY 894 million
- Completion: March 1984
- Number of Floors: 11F, steel-framed reinforced concrete construction
- Area: Gross Floor Area of approximately 642 tsubo (approx. 22,800 sq. ft.)
- Number of Tenants: 8 as of April 30, 2026
- Occupancy: 100% as of April 30, 2026