CapitaLand Limited, through its wholly owned mall business CapitaLand Mall Asia, has entered into conditional sale and purchase agreements to acquire a portfolio of four income-producing office and retail properties in Japan’s Great Tokyo Area, at an agreed property price of 49.7 billion yen (US$437.5 million).

The acquisition will strengthen CapitaLand’s foothold in Greater Tokyo, the world’s most populous metropolis, and increase the Group’s total asset size in Japan to about US$1.75 billion.

The portfolio comprises: two office buildings in Yokohama, Yokohama Blue Avenue and Sun Hamada; one office building in Tokyo, Kokugikan Front; and one shopping mall in Saitama, Seiyu and Sundrug. Including transaction costs, the total investment for the portfolio is about 51 billion yen (US$450 million).

Jason Leow, CEO of CapitaLand Mall Asia says “[the] Great Tokyo Area has been increasing, reaching nearly 38 million people in 2015. The trend is expected to continue, underpinning Greater Tokyo’s economic development with an expanding labour force”.

Image: The largest of three income-producing office properties in Greater Tokyo that CapitaLand is acquiring, the 555,000-square-foot Yokohama Blue Avenue is located in Yokohama, about a 25-minute car ride from Tokyo’s Central Business District.