PGIM Real Estate has sold Toyobo Building, a 12-story high-rise office building located in Osaka, Japan, on behalf of its investors. PGIM Real Estate is of PGIM, the US$1.4 trillion global investment management business of U.S.-headquartered Prudential Financial, Inc. (NYSE: PRU).
PGIM Real Estate acquired the property in October 2017 from Toyobo Corporation, and implemented a capital improvement program to modernize the 40-year-old building. At the time of its acquisition, PGIM Real Estate signed a long-term lease with Toyobo Corporation to remain in approximately 60% of the building, with the remaining space leased to third-party tenants.
“The improved performance of this asset, as well as the strong underlying fundamentals in the Osaka market, allowed us to swiftly execute on the disposition of this asset during a period of broader economic uncertainty brought on by COVID-19,” said Morgan Laughlin, PGIM Real Estate’s head of Japan. “Investors in the market recognized the value that we were able to unlock in this asset, which led to a competitive sale process and a very positive end result for our investors.”
Toyobo Building is located in close proximity to Osaka Station, making it an ideal location for national or regional headquarters for corporations spanning a diverse sector profile.