The Standard Life Investments Global Real Estate Fund has completed the sale of the Ginza 1 Chome Building in Tokyo for €73.9m (£65m).
TH Real Estate has acquired the modern mixed-use building, which comprises 4552m² of retail and office space arranged over 13 storeys, along with basement parking. It is located in the centre of Tokyo’s central business district in Ginza, Chuo Ward.
Standard Life Investments acquired the building in 2014 for €44m (£38.7m) and is disposing of this asset following a successful letting campaign. This disposal represents an ungeared internal rate of return of 30.1% in sterling terms, derived from a combination of asset management and currency appreciation over the holding period.
Commenting on this disposal, James Britton, Fund Manager of the Standard Life Investments Global Real Estate Fund, said: “We are pleased to have fulfilled our business plan for this building, working in close collaboration with our local partners; Sumitomo Mitsui Trust Bank and Sumitomo Mitsui Trust Real Estate Investment Management. Our strategy of taking on a degree of letting risk in a core sub-market has generated exceptional returns for investors. Our remaining Tokyo office, Nishi-Shinbashi, continues to be a core holding providing jurisdictional and currency diversification benefits for the fund.”
