Hulic REIT Executes Asset Swap with Sponsor to Improve Portfolio Age Profile

On June 27, 2025, Hulic Reit, Inc. announced it had executed an asset swap with its sponsor Hulic Co., Ltd., involving the partial divestment of the “Hulic Kamiyacho Building” and the acquisition of a stake in the “Hulic Shinjuku Building.”

Specifically, Hulic REIT sold its 35% co-ownership interest in the Hulic Kamiyacho Building for JPY 23.45 billion and used JPY 2.9 billion in additional funds to acquire a 41% interest in the Hulic Shinjuku Building for JPY 26.35 billion. The transaction was structured as a value-for-value swap and does not generate a capital gain.

The Hulic Kamiyacho Building, located just a one-minute walk from Kamiyacho Station on the Tokyo Metro Hibiya Line, was completed in 1985. The 11-story office building features large, efficient floor plates of approximately 940 tsubo per floor (approx. 31,000 sq. ft.). Following a major renovation in 2007, it has maintained high occupancy, primarily among foreign financial institutions and IT tenants.

By divesting from an aging property facing potential capital expenditure and vacancy risks, and reinvesting in the relatively new Hulic Shinjuku Building (completed in 2014 and directly connected to Shinjuku Station), the REIT aims to reduce the average age of its portfolio and stabilize future distributions. The Hulic Shinjuku Building offers a gross floor area of approximately 2,903 tsubo (approx. 96,000 sq. ft.).

This move aligns with the REIT’s ongoing asset recycling strategy, which in recent years has included the acquisition of the Grand Nikko Tokyo Bay Maihama and the sale of two office buildings. These efforts are intended to enhance rental income growth, improve distribution stability, and increase capital efficiency.

Following the transaction, sponsor Hulic Co., Ltd. holds a 35% interest in the Kamiyacho Building and has disclosed that the remaining 65% interest held by the REIT may also be sold in the future. If Hulic acquires full ownership, redevelopment or intensified land use may become viable, though no specific plans have been announced.

Key Facts

• Property Name: Hulic Kamiyacho Building

  • Buyer: Hulic Co., Ltd.

  • Seller: Hulic Reit, Inc.

  • Transaction Price: JPY 23.45 billion

  • Location: 4-3-13 Toranomon, Minato-ku, Tokyo

  • Nearest Station: 1-min walk from Kamiyacho Station (Tokyo Metro Hibiya Line)

  • Completion: April 1985

  • Number of Floors: 11F / B2

  • Gross Floor Area: Approx. 12,425 tsubo (approx. 410,600 sq. ft.)

• Property Name: Hulic Shinjuku Building

  • Buyer: Hulic Reit, Inc.

  • Seller: Hulic Co., Ltd.

  • Transaction Price: JPY 26.35 billion

  • Location: 3-25-1 Shinjuku, Shinjuku-ku, Tokyo

  • Nearest Station: Directly connected to Shinjuku Station (JR Lines / Tokyo Metro Marunouchi Line)

  • Completion: October 2014

  • Number of Floors: 10F / B3

  • Gross Floor Area: Approx. 2,903 tsubo (approx. 96,000 sq. ft.)