New Star buys three in Japan

THE NEW Star International Property Fund has acquired three office properties in Japan for ¥9.2 billion.

In the last three months, the fund has bought two properties in Sydney.

Yesterday, it has purchased the Rokubancho Building and the Uchikanda building in Chiyoda-ku, Tokyo, and the Nippo Honmachi building in Osaka.

The Rokubancho property is a newly-refurbished prime seven level office building let to the cultural arm of the Spanish government on a fixed 10-year lease from 2007. The Uchikanda building is an eight level property currently fully leased to a number of office users.

Finally, the Honmachi building is an 11 level leased to multiple tenants.

The portfolio will provide a blended net operating yield close to 5.5%.

New Star’s head of global property Stuart Webster said the combination of these assets plus the recent acquisitions elsewhere in Asia/Australia and Europe provide investors with exposure to a quality, diversified portfolio in what is considered by many to be a more stable asset class in these volatile times.

Australian Property Journal