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Japan Metropolitan Fund Investment Corporation to Acquire One of the Largest Office Buildings in the Tsukuba Area as a Value-Add Deal Utilizing a Bridge Vehicle

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Japan Metropolitan Fund Investment Corporation to Acquire One of the Largest Office Buildings in the Tsukuba Area as a Value-Add Deal Utilizing a Bridge Vehicle

Japan Metropolitan Fund Investment Corporation to Acquire One of the Largest Office Buildings in the Tsukuba Area as a Value-Add Deal Utilizing a Bridge Vehicle

Japan Metropolitan Fund Investment Corporation (JMF) will acquire the office building “Tsukuba Building” in Tsukuba City, Ibaraki Prefecture, on March 2, 2026. The acquisition price is JPY 10.731 billion, versus an appraised value of JPY 13.4 billion, representing an unrealized gain ratio of 24.9%.

The property was acquired by a bridge vehicle in September 2024, in line with the intentions of KJR Management, JMF’s asset manager. This is a value-add transaction in which internal growth was realized during an approximately 18-month hold period before being rolled into the REIT.

The building is located about a five-minute walk from Tsukuba Station on the Tsukuba Express line. With 19 floors above ground and two basement levels and a gross floor area of approximately 7,945 tsubo (approx. 282,700 sq. ft.), it is a landmark property and among the largest office buildings in the Tsukuba area. Completed in March 1990, the property is now 35 years old, but renewal works—such as HVAC upgrades and elevator replacements—have already been carried out.

During the bridge vehicle’s ownership period, rent increases were achieved with more than half of the tenants, lifting the average rent level by 6.7%. The most recent peak contracted rent reached JPY 19,000 per tsubo, which is 32.9% above the average rent level, suggesting further upside potential. NOI after acquisition is expected to increase by 24.8% compared with the level at the time the bridge vehicle acquired the property.

Tenants include a diversified roster of major companies across IT/telecommunications, finance/insurance, manufacturing, and other sectors. Occupancy remained above 95% even during the COVID-19 period and is currently running at 100%. Similar sponsor-led value-add strategies have also been adopted by other J-REITs; for example, Ichigo Office REIT incorporated a property around the same time where a sponsor subsidiary executed renewals and rent increases.

Key Facts

  • Property Name: JMF Building Tsukuba 01 (current name: Tsukuba Building)

  • Buyer: Japan Metropolitan Fund Investment Corporation

  • Seller: Tsukuba Bridge GK

  • Planned Acquisition Price: JPY 10.731 billion

  • Appraised Value: JPY 13.4 billion (value date: Feb. 1, 2026)

  • Location: 1-6-1 Takezono, Tsukuba City, Ibaraki Prefecture

  • Nearest Station: Approx. 5-minute walk from Tsukuba Station (Tsukuba Express)

  • Completion: March 1990

  • Number of Floors: 19F / B2 (Structure: steel frame)

  • Gross Floor Area: Approx. 7,945 tsubo (approx. 282,700 sq. ft.)

  • Typical Floor Plate: Approx. 295 tsubo (approx. 10,500 sq. ft.)

  • Ceiling Height: 2,550 mm

  • NOI Yield: 6.1%

  • Occupancy: 100%