Japan’s second-biggest real estate investment trust is weighing a plan to raise tens of billions of yen in new capital to buy office buildings in high-rent districts, signaling new interest in the nation’s reviving real estate market.
Japan Real Estate Investment, which is sponsored by property developer Mitsubishi Estate, aims to increase capital "as soon as possible” through an equity offering, Naoyuki Inoue, Chief Executive Officer of the REIT’s management company, Japan Real Estate Asset Management, said in an interview on Sept. 12. He said the company has started scouting out office properties to buy but didn’t disclose the exact amount of the equity sale.
The plan comes as the Tokyo Stock Exchange REIT Index hit its highest close in more than two years on Tuesday, after the sector reversed a downtrend ending last year. The sector has risen 17% this year, outperforming the benchmark Topix gain of 13%.
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