Pending Ralph Lauren Sale Verifies Tokyo's Number One Spot
Wall Street Journal reports: The Wall Street Journal recently published a story detailing the return of Tokyo’s commercial property market. To quantify the Japanese capital’s upswing, the Journal relied on data from Real Capital Analytics’ second quarter Global Capital Trends. “With prices still near 36-year lows, Tokyo led all cities world-wide during the first half of 2010 with real estate transaction volume exceeding $10 billion, according to Real Capital Analytics, maintaining a big lead over London and Hong Kong, the Nos. 2 and 3 cities, respectively.”
To exemplify the recent rebound in Tokyo’s property market, the Journal broke the news that “…a Japanese-led consortium is set to snap up the iconic Ralph Lauren building in central Tokyo for $350 million, in one of the largest real estate transactions this year.” Real estate investment fund Secured Capital Japan is set to close on the property as soon as next week, with an acquisition loan provided by Germany-based Deka Bank.
The Journal went on to detail some of the differences between the markets in Japan and those in Europe and the US. The largest is that the “Japanese market is still an attractive destination for real-este investment given the stable economy and relatively high yields.” Lending and secondary mortgage markets have also resumed much faster in Japan, as commercial mortgage-backed securities typically have a three-year cycle in Japan as compared to five or more years in Europe and the US. In a similar way, however, to the US and Europe, investors and lenders have continued to concentrate their activity on high-quality property and locations.
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Posted by: Nina Turner