GIC’s Tokyo property said to draw $1.4 billion bid by Kenedix

Singapore’s sovereign wealth fund GIC is reportedly considering a ¥226 billion ($1.4 billion) bid for its stake in the Pacific Century Place Marunouchi office building in Tokyo, according to sources familiar with the matter. The property, located near Tokyo Station, was acquired by GIC in 2014 for ¥180 billion ($1.1 billion) from PAG-backed Secured Capital Investment Management. The potential buyer, Kenedix, a Japanese real estate investment and asset management firm, has been in discussions with GIC and its advisors, Jones Lang LaSalle and Mizuho Trust & Banking, regarding the transaction.

Kenedix, which has a long history in Japan’s real estate market since its establishment in 1995, has expanded its operations across multiple sectors, including logistics, residential, and retail REITs. The firm has also ventured into renewable energy and real estate security token offerings, reflecting its diversified approach to real estate investment. The proposed acquisition aligns with Kenedix’s strategy to strengthen its presence in high-quality commercial assets in prime locations.

The potential sale highlights the ongoing investor interest in Tokyo’s commercial real estate market, despite concerns over rising interest rates and their impact on borrowing costs. GIC, which recently moved its office to a larger space nearby, has been expanding its Japan-focused investment team and is expected to pursue more deals in the region.