Nippon REIT Investment Corporation to Acquire Five Properties for JPY 17.3 Billion, Including Two Hotels and Urban Industrial Asset

Nippon REIT Investment Corporation announced it will acquire five properties for a total of JPY 17.339 billion. The portfolio consists of two hotels, two office buildings, and one urban industrial asset. Four of the five assets will be acquired through forward commitment contracts.

The core property, Hotel Resol Stay Akihabara, is a 13-story steel-frame hotel completed in August 2021 with a gross floor area of approximately 3,532.93 sqm (approx. 38,025 sq. ft.) and a total of 132 guestrooms. The property benefits from excellent accessibility, located about a three-minute walk from JR Akihabara Station and a two-minute walk from Iwamotocho Station on the Toei Shinjuku Line.

Through these acquisitions, the REIT aims to enhance NOI by incorporating newer hotels with variable rent structures, thereby generating free cash flow while mitigating depreciation expenses in an inflationary environment.

Key Facts

• Property Name: Hotel Resol Stay Akihabara

  • Buyer: Nippon REIT Investment Corporation

  • Seller: The Sankei Building Co., Ltd.

  • Transaction Price: JPY 6,250 million

  • Location: 17-10, Kanda-Sudacho 2-chome, Chiyoda-ku, Tokyo

  • Nearest Station: JR Akihabara Station (approx. 3-min. walk) / Toei Shinjuku Line Iwamotocho Station (approx. 2-min. walk)

  • Completion: August 2021

  • Number of Floors: 13F

  • Total Guestrooms: 132

  • Gross Floor Area: approx. 3,532.93 sqm (approx. 38,025 sq. ft.)

• Property Name: NW SQUARE

  • Buyer: Nippon REIT Investment Corporation

  • Seller: A.P.17 LLC

  • Transaction Price: JPY 1,700 million

  • Location: 1-8, Kita 11-jo Nishi 4-chome, Kita-ku, Sapporo-shi, Hokkaido

  • Nearest Station: Subway Namboku Line Kita 12-jo Station (approx. 3-min. walk) / JR Sapporo Station (approx. 8-min. walk)

  • Completion: December 2022

  • Number of Floors: 6F

  • Gross Floor Area: approx. 655 tsubo (approx. 23,255 sq. ft.)

• Property Name: FORECAST Yokkaichi

  • Buyer: Nippon REIT Investment Corporation

  • Seller: Fuyo General Lease Co., Ltd.

  • Transaction Price: JPY 3,531 million

  • Location: 1-5-17, Unomori, Yokkaichi-shi, Mie

  • Nearest Station: Kintetsu Yokkaichi Station (approx. 5-min. walk)

  • Completion: September 2022

  • Number of Floors: 7F

  • Gross Floor Area: approx. 1,555 tsubo (approx. 55,415 sq. ft.)

• Property Name: Smile Hotel Premium Hakodate Goryokaku

  • Buyer: Nippon REIT Investment Corporation

  • Seller: The Sankei Building Co., Ltd.

  • Transaction Price: JPY 2,700 million

  • Location: 8-15, Hon-cho, Hakodate-shi, Hokkaido

  • Nearest Station: Hakodate City Tram Goryokaku-Koen-Mae Station (approx. 3-min. walk) / JR Hakodate Station (approx. 10-min. drive)

  • Completion: April 2020

  • Number of Floors: 9F

  • Total Guestrooms: 190

  • Gross Floor Area: approx. 5,042.73 sqm (approx. 54,300 sq. ft.)

• Property Name: innoba Ota

  • Buyer: Nippon REIT Investment Corporation

  • Seller: The Sankei Building Co., Ltd.

  • Transaction Price: JPY 3,158 million

  • Location: 32-6, Naka Rokugo 4-chome, Ota-ku, Tokyo and others

  • Nearest Station: Keikyu Main Line Rokugodote Station (approx. 5-min. walk)

  • Completion: August 2023

  • Number of Floors: 6F

  • Gross Floor Area: approx. 1,569 tsubo (approx. 55,830 sq. ft.)