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Japan Excellent To Sell Daiba and Sapporo Buildings, Other Assets for JPY 15.6 Billion

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Japan Excellent To Sell Daiba and Sapporo Buildings, Other Assets for JPY 15.6 Billion

Japan Excellent To Sell Daiba and Sapporo Buildings, Other Assets for JPY 15.6 Billion

Japan Excellent Investment Corp. decided on Aug. 21, 2026, to sell the real estate trust beneficiary interests in Daiba Garden City Building and Sapporo Otemachi Building, along with part of the land at Urawa SH Building. The combined planned disposition price is JPY 15.555 billion.

The planned disposition price for Daiba Garden City Building is JPY 10.7 billion. Completed in 2007, the office building has a typical floor plate of approximately 328 tsubo (approx. 11,700 sq. ft.). The REIT acquired it for JPY 11 billion in February 2011 and has held it for more than 15 years. It decided to sell because the property's yield is low among its holdings in Tokyo's six central wards and the room to improve earnings is limited.

For Sapporo Otemachi Building, the REIT will sell a 70% quasi-co-ownership interest in the trust beneficiary interest to Kajima Corporation for JPY 4.795 billion. It acquired the interest for JPY 4.069 billion in December 2021, and the planned disposition price is about 18% above the acquisition price. Completed in 1984, the building was also constructed by Kajima. Now 42 years old, the property faces future capital expenditures and an expected loss of competitiveness as newly built offices are supplied in Sapporo.

At Urawa SH Building, the REIT will sell approximately 14 tsubo (approx. 500 sq. ft.) of the site, which is subject to a city planning road project, to the city of Saitama for JPY 60 million. There will be no impact on rental income.

The REIT also rotated assets through office acquisitions and dispositions in the fiscal period ended June 2026 (see related article: Japan Excellent Investment Corp. to Acquire Offices in Akasaka and Nagoya, Divest "BIZCORE Akasaka-Mitsuke"). After the current dispositions are completed, its portfolio will comprise 30 properties with an asset size of JPY 276.169 billion on an acquisition-price basis.

Key Facts

  • Seller: Japan Excellent Investment Corp.
  • Purchase and Sale Agreement Date: August 21, 2026 (scheduled)
  • Total Planned Disposition Price: JPY 15.555 billion
  • Total Book Value: JPY 13.108 billion
  • Property Name: Daiba Garden City Building
    • Transaction Type: Real estate trust beneficiary interest
    • Buyer: Undisclosed (domestic special purpose company)
    • Scheduled Disposition Date: September 30, 2026
    • Planned Disposition Price: JPY 10.7 billion
    • Book Value: JPY 8.675 billion
    • Appraisal Value: JPY 8.3 billion (as of June 30, 2026; Chuo Real Estate Appraisal Co., Ltd.)
    • Location: 2-3-5 Daiba, Minato-ku, Tokyo
    • Nearest Station(s): Two-minute walk from Odaiba-Kaihinkoen Station on the Yurikamome Line / Five-minute walk from Tokyo Teleport Station on the Tokyo Waterfront Area Rapid Transit Rinkai Line
    • Completion: December 2007
    • Number of Floors: 13F / B2 (steel-frame and steel-reinforced concrete construction, entire building)
    • Ownership Type: 55% co-ownership interest in the land / sectional ownership of the building
    • Area: Typical floor plate of approximately 328 tsubo (approx. 11,700 sq. ft.) / Leasable area of approximately 3,667 tsubo (approx. 130,500 sq. ft.)
    • Number of Tenants: 4
    • Occupancy: 91.0% (as of the end of June 2026)
    • Seller's Acquisition Date: February 4, 2011
    • Seller's Acquisition Price: JPY 11 billion
  • Property Name: Sapporo Otemachi Building
    • Transaction Type: 70% quasi-co-ownership interest in a real estate trust beneficiary interest
    • Buyer: Kajima Corporation
    • Scheduled Disposition Date: January 28, 2027
    • Planned Disposition Price: JPY 4.795 billion
    • Book Value: JPY 4.383 billion
    • Appraisal Value: JPY 4.767 billion (as of June 30, 2026; Japan Real Estate Institute)
    • Location: 4-5-1 Minami 1-jo Nishi, Chuo-ku, Sapporo, Hokkaido
    • Nearest Station(s): Two-minute walk from Odori Station on the Sapporo Municipal Subway Namboku, Tozai and Toho Lines / One-minute walk from the Nishi-4-chome stop on the Sapporo Streetcar
    • Completion: April 1984
    • Number of Floors: 10F / B1 (steel-reinforced concrete construction)
    • Area: Site area of approximately 363 tsubo (approx. 12,900 sq. ft.) (entire building) / Typical floor plate of approximately 220 tsubo (approx. 7,800 sq. ft.) / Gross Floor Area of approximately 2,962 tsubo (approx. 105,400 sq. ft.) (entire building) / Leasable area of approximately 1,409 tsubo (approx. 50,100 sq. ft.) (equivalent to the 70% quasi-co-ownership interest)
    • Number of Tenants: 1 (27 end tenants)
    • Occupancy: 97.0% (as of the end of June 2026)
    • Seller's Acquisition Date: December 1, 2021
    • Seller's Acquisition Price: JPY 4.069 billion
  • Property Name: Urawa SH Building
    • Disposition Target: Land of 45.48 sq. m (approx. 14 tsubo / approx. 500 sq. ft.)
    • Buyer: City of Saitama, Saitama Prefecture
    • Scheduled Delivery Date: After completion of the structure removal work, by March 26, 2027
    • Planned Disposition Price: JPY 60 million
    • Book Value: JPY 50 million
    • Appraisal Value: JPY 60 million (as of August 1, 2026; Japan Real Estate Institute)
    • Location: 4-26-15 Kishicho, Urawa-ku, Saitama, Saitama Prefecture
    • Nearest Station(s): Five-minute walk from Urawa Station on the JR Keihin-Tohoku Line, Ueno-Tokyo Line and Shonan-Shinjuku Line

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