Tokaido REIT To Sell Commercial Ground-Lease Site in Shizuoka City for JPY 851 Million
Tokaido REIT announced on September 29, 2026, that it will sell the trust beneficiary interest in Shizuoka Machine Yard (land) in Suruga Ward, Shizuoka City, and signed the sale and purchase agreement the same day. The scheduled sale price is JPY 851 million, with a 49% quasi-co-ownership interest to be delivered on January 27, 2027, and the remaining 51% on February 19. The buyer is a domestic business company whose name has not been disclosed.
The property is land in a quasi-industrial zone with a site area of approximately 1,882 tsubo (approx. 67,000 sq. ft.), located approximately 3.2 km south of Shizuoka Station on the JR Tokaido Main Line. It is leased to a single tenant under a fixed-term business-use land lease, with an occupancy rate of 100%.
The REIT acquired the property for JPY 600 million in January 2022. The scheduled sale price exceeds the appraisal value of JPY 730 million by approximately 17%. The REIT expects gains on sale of JPY 98 million in the fiscal period ending January 2027 and JPY 102 million in the fiscal period ending July 2027, and the appraisal NOI yield on the scheduled sale price is approximately 4.2%.
According to the REIT, the property has generated stable cash flow under a long-term fixed-term land lease with fixed rent, but with limited room for internal growth going forward in an inflationary environment, it decided to realize the unrealized gain. Proceeds from the sale will be used for distributions and to repay borrowings to strengthen resilience against rising interest rates. After the transaction, the REIT's asset size (including silent partnership investments) will be JPY 74.1 billion, and it aims to expand to JPY 100 billion.
Key Facts
- Property Name: Shizuoka Machine Yard (land)
- Seller: Tokaido REIT, Inc.
- Buyer: Undisclosed (domestic business company)
- Asset to Be Sold: Trust beneficiary interest in real estate
- Scheduled Sale Price: JPY 851 million (first transfer JPY 416 million / second transfer JPY 434 million)
- Appraised Value: JPY 730 million, by Daiwa Real Estate Appraisal Co., Ltd. as of July 31, 2026
- Appraisal NOI Yield (based on scheduled sale price): Approximately 4.2%
- Expected Book Value: JPY 612 million
- Acquisition Price: JPY 600 million (acquired on January 31, 2022)
- Agreement Date: September 29, 2026
- Sale Date: First transfer (49% quasi-co-ownership interest) January 27, 2027 (scheduled) / Second transfer (51% quasi-co-ownership interest) February 19, 2027 (scheduled)
- Broker: Yoshicon Co., Ltd.
- Location: 148-1 Aza Kamishinden, Nishiwaki, Suruga Ward, Shizuoka City, Shizuoka Prefecture (lot number)
- Access: Approximately 3.2 km south of Shizuoka Station on the JR Tokaido Main Line
- Zoning: Quasi-industrial zone
- Area: Site area of approximately 1,882 tsubo (approx. 67,000 sq. ft.)
- Lease: Fixed-term business-use land lease agreement
- Trustee: Sumitomo Mitsui Trust Bank, Limited