Starhill Global REIT exits Japan with Ebisu Fort sale
Starhill Global REIT has sold its final Japanese property, Ebisu Fort in Tokyo, for JPY 6.2 billion ($39.3 million), a 53.8% premium to its valuation.
Starhill Global REIT has sold its last property in Japan, the Ebisu Fort building in Tokyo, for JPY 6.2 billion ($39.3 million). This sale marks the REIT's complete exit from the Japanese market. The seven-storey retail and office building is located in Tokyo's Ebisu district and offers 18,816 square feet of net lettable area.
The sale price represents a significant 53.8 percent premium over the building's latest valuation of four billion yen. The manager stated the price reflects a 2.4 percent yield. The property accounted for 1.2 percent of the REIT's total asset value and contributed 0.8 percent of its portfolio net property income.
Gearing to fall to 34.5% from 35.8%
Proceeds from the sale will be used substantially to repay yen and Singapore dollar borrowings. This will reduce the REIT's gearing ratio to 34.5 percent, down from 35.8 percent. The manager does not expect any material pro forma financial effects on the distribution per unit or net asset value per unit.
Divestment unlocks value and financial flexibility
The manager's CEO, Kemmy Tan, said the divestment allows the trust to unlock value and pare down debt. It also provides greater financial flexibility and capacity to focus on acquiring new assets that align with its growth strategy. Net proceeds will be used for repaying yen borrowings, working capital, and other general purposes.
Broader regional activity
The Ebisu district has seen other major investments recently, including from a joint venture between KKR and PAG and from local asset manager Alyssa Partners. Beyond Japan, several other significant real estate investment moves are unfolding across the Asia-Pacific region.
| Entity | Asset/Deal | Key Detail |
|---|---|---|
| IOIPG Malaysia REIT | Planned IPO | Portfolio valued at MYR 7.7 billion ($1.8 billion) |
| IOIPG Malaysia REIT | Planned IPO | Up to 2.2 billion units (40% of total) offered |
| IOIPG Malaysia REIT | Portfolio | Includes IOI City Mall, six hotels, two offices |
| Hanwha Galleria | Bidding for Boryung Building | Shortlisted for 18-storey Seoul office tower |
| KOREIT | Boryung Building Purchase | Bought for KRW 160 billion ($118.7 million) in 2024 |
| PDG | Cremorne BTR Project | 263-unit, 16-storey tower in Melbourne |
| Peet | Takeover by Ingenia | A$992.3 million ($713.1 million) deal proposed |
| Tang Shing-bor family | Hong Kong Industrial Sale | Sold for HK$123 million ($15.7 million), 53% below 2018 price |
Starhill Global REIT will wind up its Japanese subsidiaries at the appropriate time following the Ebisu Fort sale.
