HULIC REIT to Sell All Five Network Center Properties

HULIC REIT, Inc. will transfer five network center properties it owns to its sponsor, Hulic Co., Ltd., on March 16, 2026. The total transfer price is JPY 8.0 billion, and the REIT expects to record a gain on sale of approximately JPY 1.188 billion. The investment corporation had already sold its Chiba network center in March 2025 and its Ikebukuro and Nagano network centers in September of the same year.（see related article:Hulic Reit, Inc. to Sell Two Data Center Assets to Sponsor for JPY 5.7 Billion）

The subject assets are five facilities located in Tabata, Hiroshima, Atsuta, Sapporo and Keihanna. All were acquired at the time of the REIT’s IPO in 2014 and have now reached a considerable age. Although the properties had generated stable income under long-term fixed-term lease agreements, the REIT ultimately decided to prioritize unitholder returns by weighing the risk of rising repair costs against the opportunity to realize embedded gains. Part of the net proceeds will be used for the early repayment of borrowings.

Following this transaction, the REIT will no longer hold any network centers in its portfolio. The full exit from this asset class, which it had previously categorized as “next-generation assets plus,” is consistent with its strategy of increasing hotel exposure, exemplified by its December 2024 acquisition of Grand Nikko Tokyo Bay Maihama for JPY 27.0 billion. The REIT is steering toward a portfolio strategy that keeps offices and retail facilities at about 70% while expanding hotels to about 20% to capture inbound tourism demand.

Key Facts

• Seller: HULIC REIT, Inc.

• Buyer: Hulic Co., Ltd.

• Total Transfer Price: JPY 8,000 million

• Total Book Value: JPY 6,811 million

• Gain on Sale: JPY 1,188 million

• Scheduled Transfer Date: March 16, 2026

• Tabata Network Center

  • Transfer Price: JPY 1,650 million

  • Location: Kita Ward, Tokyo

  • Appraised Value: JPY 1,560 million

  • Cap Rate: 4.7%

• Hiroshima Network Center

  • Transfer Price: JPY 1,250 million

  • Location: Hiroshima, Hiroshima Prefecture

  • Appraised Value: JPY 1,160 million

  • Cap Rate: 5.7%

• Atsuta Network Center

  • Transfer Price: JPY 1,040 million

  • Location: Nagoya, Aichi Prefecture

  • Appraised Value: JPY 1,020 million

  • Cap Rate: 5.4%

• Sapporo Network Center

  • Transfer Price: JPY 2,700 million

  • Location: Sapporo, Hokkaido

  • Appraised Value: JPY 2,540 million

  • Cap Rate: 5.1%

• Keihanna Network Center

  • Transfer Price: JPY 1,360 million

  • Location: Kizugawa, Kyoto Prefecture

  • Appraised Value: JPY 1,360 million

  • Cap Rate: 5.2%