Japan Real Estate Market Summary
Towards end of November 2009, Asterisk observed more emerging, new opportunities than the 3 preceding months.
Due to the shortage of opportunities in the last 3 months, the target cap rate gap between domestic Japanese sellers and buyers has increased.
We are seeing some rapid sales at the end of the year.
This is making market price better for buyers and we think this condition will last until the end of March 2010. In addition, good deals are also coming under the stronger pressure of CMBS due date.

Office

Market Status
We see many queries from owners of prime property(including those in special situations) about potentially selling property, however those sellers are very sensitive for information disclosure and prefer to know potential buyers profile before giving property details. Please contact us for prime off-market office property listings. i.e. distressed deals (under 4 billion JPY, over 8% caprate) recently surfacing due to the year end .
In addition, there are offerings of brand new vacant office buildings in prime locations. Since the location and quality of the news office buildings are very good, it will be a good deal if it were leased to a master leasee who has good credit.

Market Cap rate (Central Tokyo Only)
*Office buildings in Tokyo 5 wards prime areas,built in about 5yrs, lot size is more than 5 billion JPY, cap rate is about 4.50-5.00%
*Office buildings in Tokyo 5 wards prime areas,built in about 10yrs, lot size is more than 5 billion JPY, cap rate is about 5.00-5.50%
*Smaller size office buildings (lot size : less than 1 billion JPY) : cap rate is 6.50 - 8.00%

Selected Properties
1.Central Tokyo A-Grade Office Building (Nihonbashi)
Completed : 2003
No. of floor: 13
Building Area : 10,000m2
Occupancy : 100%
Asking Price : JPY 20,000,000,000-
Net Operating Income / Cap Rate : N.A (currently used for own use,buyer can offer new lease agreement to present tenants.)

2.Central Tokyo Office Building (Akasaka)
Completed : 1990
NRA: 8,500m2
Occupancy : 80%
Asking price : JPY 7,000,000,000-
Net Operating Income / Cap Rate : 6.50%

Residential

Market Status
Residential properties are considered most stable and popular now for investment. For a year, luxury residential buildings have had lower occupancy (with influence from the Lehman shock)however recently the rental market is showing more stability and some high grade residential buildings are becoming superb investment deals with high occupancy in prime location(Shibuya, Minato area).

Market Cap rate(Central Tokyo Only)
*Residential buildings in Tokyo 5 wards + Meguro & Bunkyo wards prime areas,built in about 5yrs, lot size is more than 4 billion JPY, cap rate is about 5.00-5.50%
*Residential buildings in Tokyo 5 wards + Meguro & Bunkyo wards prime areas,built in about 10yrs, lot size is more than 4 billion JPY, cap rate is about 5.50-6.00%
*Residential buildings in Tokyo 5 wards + Meguro & Bunkyo wards prime areas,built in about 10yrs, lot size is less than 1 billion JPY, cap rate is about 6.00 - 7.00%

Selected Properties
1.Central Tokyo Residential Apartments Bulk Deal (from lender)
NO. of properties in a bulk : 12
Completed : 2005-2006
NO. of unit: 20-30 units (average)
Occupancy : 90%+(average)
Lot of each properties : JPY 330,000,000- to JPY 1,500,000,000-
Asking price: JPY 7,500,000,000- (negotiable)
Net Operating Income / Cap Rate : 6.50%

2.Central Tokyo A-Grade Residential Apartment (Ebisu)
Completed : 2008
NO. of unit : 65 (100% occupancy)
NRA: 4,500m2
Asking price: JPY 6,200,000,000-
Net Operating Income / Cap Rate : 5.30%

Hotel

Market Status
Lenders are hesitant to finance to hotel property due to its highly volatile business nature. We have observed less buyers and many sellers in 2009.
It is an ideal time for equity buyers to buy some of (mid-price to up-scale) full-service hotels in Tokyo.Some limited service hotels in prime locations in Tokyo and luxury Ryokans in the famous Hakone. These Ryokans in Hakone and other superb locations are often very rare to see on market and some of them have consistently proven very profitable through the years.
Some Ryokans in our listings are usually limited to qualified domestic buyers, however we will gladly introduce them to you.

Market Statistics (September. 2009)
*Tokyo Hotel : ADR - USD 228.19  /  RevPAR - USD 163.81  /  Occ.rate - 71.80% (HNN),  75.90% (Hotel&Restaurant magazine)
*Japan Hotel : ADR - USD 153.96  /  RevPAR - USD 112.80  /  Occ.rate - 73.30%(HNN)
*Please contact us for more details.

Selected Properties
1.Luxury Resort Hotel in Hakone
Completed : 2005
Type : luxury hotel and spa resort
No. of rooms : 80
Asking price: JPY 5,000,000,000-

2.World Class Theme park Official Hotel, High-Grade
Completed : 2007
Type : Up-scale / Full-service Hotel,
Occupancy : 90-95% (average occupancy rate)
No. of guest rooms : 400+
Asking Price : JPY 20,000,000,000-
Net Operating Income / Cap Rate : 6.00%+

(We are dealing development sites for luxury resort development such as destination club and etc,, too. please contact us for resort development in Japan.)

Finance

Market Status
Most lenders are becoming increasingly optimistic to provide financing , however only for A-class property with credible borrowers(sponsors).
Roughly maximum LTV is about 60% , and interest rate is widely from 200-300 basis points.

Asterisk Realty is a first class private Japanese real estate brokerage that markets high net worth Japanese properties to international investors seeking advisory on property development, ownership, investment and occupation.

Superb off-market properties are rarely seen in the open market even during times of financial hardship. However there is a door way into the discrete market where conservative Japanese property owners welcome trusted and accredited “outside buyers”. Asterisk Realty is an exclusive gateway to build trust with foreign investment interest and introduce the best of the best off-market properties.

Please contact us for superb investment opportunities in Japan.

Contact : info@asteriskrealty.jp