Nippon Building Fund Acquires Additional Interest in Higashi-Gotanda Square for JPY 2.4 Billion

Nippon Building Fund acquired additional sectional ownership interests in Higashi-Gotanda Square, an office building in Shinagawa-ku, Tokyo, on September 30, 2026. The acquisition price was JPY 2.4 billion, and the sale and purchase agreement was signed and the property delivered on the same day. The seller is a domestic corporation whose name has not been disclosed.

The REIT acquired the sectional ownership of the 14th floor and a 50% co-ownership interest in the sectional ownership of the 15th floor. Its ownership ratio based on exclusive floor area rose from approximately 38.42% to approximately 48.53%, and its site-right ratio rose from approximately 38.30% to approximately 48.47%. The REIT believes that the larger ownership share will enhance the property's asset value and liquidity.

The property is a five-minute walk from Gotanda Station and a six-minute walk from Osaki Station. Completed in 2009, the building has 16 floors above ground and two below, with a typical floor plate of approximately 328 tsubo (approx. 11,700 sq. ft.). Osaki Electric, Golf Digest Online and giftee are among the companies headquartered there.

The seller leases the acquired portion to Mitsui Fudosan, and the REIT will assume the seller's position as lessor. Part of the first floor and the fourth through 16th floors are subject to unified management rules agreed between the sectional owners and Mitsui Fudosan, under which each sectional owner receives rental revenue and bears expenses in proportion to its interest. The REIT's unified management interest rose from approximately 43.33% to approximately 54.86%. As of the end of August 2026, the unified management areas had 16 end tenants and an occupancy rate of 100%.

The REIT acquired its existing interest in 2012 for JPY 8.35 billion, bringing the total acquisition price including the additional interest to JPY 10.75 billion.

Key Facts

• Property Name: Higashi-Gotanda Square (additional acquisition)
• Buyer: Nippon Building Fund Inc.
• Seller: Undisclosed (domestic corporation)
• Asset Acquired: Sectional ownership of the 14th floor and a 50% co-ownership interest in the sectional ownership of the 15th floor (site-right ratio approx. 10.17%)
• Acquisition Price: JPY 2.4 billion
• Appraised Value: JPY 2.41 billion, by Daiwa Real Estate Appraisal Co., Ltd. as of July 31, 2026
• Ownership Ratio After Acquisition: Approx. 48.53% (exclusive floor area) / approx. 48.47% (site-right ratio) / approx. 54.86% (unified management interest)
• Agreement Date / Acquisition Date: September 30, 2026
• Location: 2-10-2 Higashi-Gotanda, Shinagawa-ku, Tokyo
• Nearest Station(s): Five-minute walk from Gotanda Station on the JR Yamanote Line, the Toei Asakusa Line and the Tokyu Ikegami Line / Six-minute walk from Osaki Station on the JR Yamanote, Shonan-Shinjuku and Saikyo lines and the Tokyo Waterfront Area Rapid Transit Rinkai Line
• Completion: April 2009
• Number of Floors: 16F / B2 (steel-frame and steel-reinforced concrete construction)
• Use: Office
• Area: Site area of approximately 1,146 tsubo (approx. 40,800 sq. ft.) (entire property) / Gross Floor Area of approximately 8,338 tsubo (approx. 296,700 sq. ft.) (entire property) / Typical floor plate of approximately 328 tsubo (approx. 11,700 sq. ft.)
• Lessee: Mitsui Fudosan Co., Ltd. (16 end tenants)