DEGI, part of Aberdeen Property Investors, has completed its first investment in Japan by signing the sales contract for the fully let retail property La Porte Shinsaibashi in Osaka. The property, purchased indirectly through a real estate company for €90 million, will be added to the DEGI International open-ended property fund, which focuses on commercial properties worldwide.
The seller is a special purpose company, invested in an AIG Global Real Estate sponsored fund. DEGI has been advised by the institutional transaction team of CB Richard Ellis Tokyo.
"This investment marks our entry into Japan whilst increasing our exposure to the Asian property market. Our aim is to make further acquisitions in Japan and to build a diversified property portfolio that provides a stable basis for our involvement in Asia," comments Malcolm Morgan, managing director at DEGI responsible for property acquisitions.
"We also plan to make investments in Asia's dynamic growth markets, such as China and Singapore, where we see attractive opportunities for property investors. Currently, we are identifying promising acquisitions with the aim of building a significant Asian portfolio," stresses Morgan.
Completed in December 2007, the building is situated in Osaka's most prominent retail location, the Shinsaibashi quarter. Osaka is the second largest retail market in Japan behind Tokyo, in terms of both size and turnover. It is also the second largest city in Japan, behind Tokyo, in terms of GDP and the third largest in terms of population with 2.6 million inhabitants.
La Porte Shinsaibashi comprises approximately 3,900 m