GIC sells Tokyo office tower slice to Kenedix for $1.4B

GIC, the Singapore sovereign wealth fund, has agreed to sell the office component of Pacific Century Place Marunouchi in Tokyo to Kenedix, a Japanese fund manager, Mingtiandi reported, citing market sources. The price is more than JPY 230 billion, or $1.4 billion.

The 32-story building, completed in 2001 and adjacent to Tokyo Station, has 81,692 square meters of gross floor area. The property also contains the Four Seasons Hotel Tokyo at Marunouchi, plus retail and food outlets, but GIC owns only the office portion. GIC bought that office space nearly 12 years ago from Secured Capital Investment Management, now part of PAG, for JPY 180 billion.

At the bottom of the reported range, the sale price lands JPY 50 billion above that acquisition cost, a gain of roughly 28% over a 12-year hold. That comes to just over JPY 4 billion in appreciation a year, before any rent GIC collected. Because GIC is selling the same office slice it bought, this trade prices Tokyo office directly, without mixing in the hotel and retail. The gap between purchase and sale prices points to a harvest at a gain, not a distress event.

The coverage describes an agreement, not a closing, and gives no closing date. It also does not disclose the office component’s vacancy rate and income, so this is an incomplete comparable. Still, an office trade of more than $1.4 billion, with a sovereign seller and a domestic fund buyer, gives Tokyo a pricing reference in a size tier where liquidity is scarce. It gives office investors the one thing they need most: a recent, large, arm’s-length number to argue against.