Japan Prime Realty Investment Corporation to Acquire Interest in JA Building and Keidanren Kaikan
Japan Prime Realty Investment Corporation announced on October 16, 2026, that it will acquire co-ownership interests in the sectional ownership rights and land of JA Building and Keidanren Kaikan in Otemachi 1-chome, Chiyoda-ku, from its sponsor Tokyo Tatemono for JPY 32.8 billion. The purchase agreement was signed the same day, and the acquisition is scheduled for October 23.
The acquisition comprises a 22.5% co-ownership interest in the sectional ownership rights to the offices on floors 5 through 25 of JA Building and floors 6 through 14 of Keidanren Kaikan, retail space on the first basement level and other areas, as well as a 12.1% co-ownership interest in the entire site of the three buildings, including the adjacent Nikkei Building. The three buildings were developed as a single project and are registered as one building. Completed in 2009, they are directly connected to Otemachi Station. The leasable area corresponding to the acquired interest is approximately 3,465 tsubo (approx. 123,300 sq. ft.), with 55 tenants and an occupancy rate of 96.6%.
The acquisition price is approximately 9.1% below the appraised value of JPY 36.1 billion, and the appraisal NOI yield on the acquisition price is approximately 3.3%. According to the REIT, amid rising rents in the Otemachi and Marunouchi area, the property's rent gap is significantly above the portfolio average (14.9% as of the end of June 2026) and is widening. All of the tenants are on fixed-term lease contracts, with an average remaining term of 2.6 years, and the REIT intends to improve profitability by capitalizing on re-contracting opportunities.
The REIT continues to make acquisitions by leveraging its sponsor's pipeline. In February 2025, it acquired an additional interest in Nakano Central Park East, bringing its ownership to 100%, and in December 2025, it acquired an additional interest in Grand Front Osaka. With this acquisition, its asset size on an acquisition price basis will reach JPY 584.9 billion. The REIT has set a target of JPY 650 billion or more by the fiscal period ending June 2031.
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Key Facts
- Property Name: JA Building and Keidanren Kaikan
- Buyer: Japan Prime Realty Investment Corporation
- Seller: Tokyo Tatemono Co., Ltd.
- Acquired Asset: Building: 22.5% co-ownership interest in sectional ownership rights / Land: 12.1% co-ownership interest in the ownership of the entire site, including Nikkei Building
- Acquisition Price: JPY 32.8 billion
- Appraised Value: JPY 36.1 billion (as of June 30, 2026, by Japan Valuers Co., Ltd.)
- Appraisal NOI Yield (based on acquisition price): Approx. 3.3%
- Post-Depreciation Yield (based on acquisition price): Approx. 3.0%
- Contract Date: October 16, 2026
- Scheduled Acquisition Date: October 23, 2026
- Location: 1-3-1 Otemachi, Chiyoda-ku, Tokyo (JA Building) / 1-3-2 (Keidanren Kaikan)
- Nearest Station(s): Directly connected to Otemachi Station on the Tokyo Metro Tozai, Chiyoda, Hanzomon and Marunouchi lines and the Toei Mita Line
- Completion: April 2009
- Number of Floors: 37F / B3 (JA Building), 23F / B4 (Keidanren Kaikan)
- Use: Office / Retail / Warehouse
- Area: Site area of approximately 4,470 tsubo (approx. 159,100 sq. ft.) (all three buildings) / Gross Floor Area of approximately 70,145 tsubo (approx. 2,496,000 sq. ft.) (all three buildings) / Leasable area of approximately 3,465 tsubo (approx. 123,300 sq. ft.) (equivalent to the acquired interest)
- Occupancy: 96.6%
- Number of Tenants: 55
- Master Lease Company: Mitsubishi Estate Co., Ltd.