Nippon Building Fund to Acquire Two Prime Tokyo Office Assets for JPY 46.9 Billion, Dispose of Mita Office Building
Nippon Building Fund Inc. announced on January 7, 2026, that it will acquire two prime office properties in central Tokyo from Mitsui Fudosan Co., Ltd. and Kajima Corporation. The total acquisition price is approximately JPY 46.9 billion, with the closing scheduled for March 31, 2026. At the same time, the REIT will dispose of Sumitomo Densetsu Building in Mita, Minato Ward, to Mitsui Fudosan Co., Ltd. for JPY 10.0 billion, with the transfer set for June 30, 2026.
One of the acquisition assets is Nihonbashi Honcho M-SQUARE, a newly developed office building jointly redeveloped by Mitsui Fudosan and Kajima. The planned acquisition price is approximately JPY 32.1 billion, against an appraised value of JPY 32.8 billion. The 12-story office building (with one basement level) was completed in October 2025 and has a Gross Floor Area of approximately 4,270 tsubo (approx. 151,900 sq. ft.), with a typical floor plate of about 290 tsubo (approx. 10,320 sq. ft.). The property has obtained ZEB Ready certification and is fully leased to 10 tenants.
The second acquisition, Toyosu Bayside Cross Tower, represents the REIT’s fourth additional acquisition in the property. For approximately JPY 14.8 billion, Nippon Building Fund will acquire sectional ownership interests in the 29th, 30th, and 32nd floors, representing about 9.19% of the total net leasable area. The REIT already owns about 47.69% of the building, and this acquisition will increase its stake to approximately 56.88%, giving it a majority interest. The property is a large-scale mixed-use complex directly connected to Toyosu Station, comprising office, retail, and hotel components.
The NOI yield is 3.3% for Nihonbashi Honcho M-SQUARE and 3.7% for Toyosu Bayside Cross Tower. Meanwhile, the disposed Sumitomo Densetsu Building, completed 34 years ago, has seen its profitability decline, with an NOI yield of 2.3%. The sale is expected to generate a capital gain of approximately JPY 5.1 billion. Through this series of transactions, the REIT aims to rejuvenate the average age of its portfolio and enhance overall earnings capacity.
Key Facts（Acquired Property）
Buyer: Nippon Building Fund Inc.
Seller: Mitsui Fudosan Co., Ltd.; Kajima Corporation
Scheduled Closing: March 31, 2026
Property Name: Nihonbashi Honcho M-SQUARE
Acquisition Price: JPY 32.108 billion
Appraised Value: JPY 32.8 billion
NOI Yield: 3.3%
Location: 1-9, Nihonbashi Honcho, Chuo-ku, Tokyo
Nearest Station: Mitsukoshimae Station (Tokyo Metro Ginza & Hanzomon Lines), approx. 4-minute walk
Completion: October 2025
Number of Floors: 12F / B1
Gross Floor Area: approx. 4,270 tsubo (approx. 151,900 sq. ft.)
Typical Floor Plate: approx. 290 tsubo (approx. 10,320 sq. ft.)
Ceiling Height: 2,800 mm
Occupancy: 100%
Property Name: Toyosu Bayside Cross Tower(Additional Acquisition)
Acquisition Price: JPY 14.810 billion
Appraised Value: JPY 16.0 billion
NOI Yield: 3.7%
Location: 2-2-1, Toyosu, Koto-ku, Tokyo
Nearest Station: Toyosu Station (Tokyo Metro Yurakucho Line), directly connected
Completion: March 2020
Number of Floors: 36F / B2 (entire building)
Acquired Portion: 29F, 30F, and 32F (approx. 9.19% ownership interest)
Typical Floor Plate: approx. 1,025 tsubo (approx. 36,500 sq. ft., entire building)
Ceiling Height: 2,800 mm
Occupancy: 100%
Key Facts（Transferred Property）
Buyer: Mitsui Fudosan Co., Ltd.
Seller: Nippon Building Fund Inc.
Scheduled Closing: June 30, 2026
Property Name: Sumitomo Densetsu Building
Disposition Price: JPY 10.0 billion
Appraised Value: JPY 5.35 billion
Book Value: JPY 4.742 billion
Capital Gain: approx. JPY 5.112 billion
Location: 3-12-15, Mita, Minato-ku, Tokyo
Nearest Station: Mita Station (Toei Mita Line), approx. 7-minute walk
Completion: June 1991
Number of Floors: 12F / B1
Gross Floor Area: approx. 2,778 tsubo (approx. 98,800 sq. ft.)
Occupancy: 100%