Investor Presentaiton
JPR
Property Acquisition in the 22nd Period
Leveraging sponsors' pipelines and selectively investing in excellent large office buildings in Fukuoka where steady market
recovery is expected compared to other regional cities
Yakuin Business Garden
1. Property Overview
Location
Completion
Total floor space
1-1, Yakuin 1-chome, Chuo-ku, Fukuoka-shi,
Fukuoka
January 2009
Type of ownership
22,286.35m²
Ownership
Characteristics and Reasons for Acquisition
Location with Excellent Access
Accomplished companies such as Kyushu Electric Power Company (head office) and NTT
DoCoMo (Kyushu branch) place their Kyushu hubs in the Yakuin area of Fukuoka where
the property is located and transportation access throughout the area is excellent with
Fukuoka's main train line, the Nishitetsu Tenjin-Omuta Line, passing through Yakuin Station
in addition to the Nanakuma subway line and several bus routes.
Exterior photogragh
2. Transaction Summary
Seller
Yakuin Holdings TMK
(an SPC invested in by Tokyo Tatemono)
Asset type
Acquisition price
Appraisal value
Acquisition date
3. Yield (Current Base)
Real estate
10,996 million yen
11,000 million yen (as of May 1, 2012)
August 8, 2012
■ Top-class Specifications in the Area
The property is relatively new, completed in January 2009. With floor space of a standard
floor of approx. 400 tsubos, the largest scale in the area, and built in a rectangular shape
with column-free space and surrounded on three sides by glass wall curtains, the property
provides a very open office environment. In terms of facilities, the property employs the
latest technology in power supply, air conditioning, communications, security, etc. and is
fully equipped with high specifications. The building's design employs a seismic damping
structure and is therefore highly resistant to earthquakes (earthquake PML: 1.45%).
NOI yield (Note)
Yield after
depreciation (Note)
5.8%
4.0%
(Note) Yields are calculated based on annual earnings and expenses estimated that
assumes the current rent level, occupancy rate, etc. NOI yield is calculated by
dividing expected NOI by the acquisition price and yield after depreciation is
calculated by dividing the rental income (expected NOI subtracted by depreciation)
by the acquisition price. Figures are rounded to the first decimal point.
Furthermore, the NOI yield of the property obtained by dividing the net operating
income, which was indicated in the appraisal report and used as a base for
calculating the capitalized value through direct capitalization method by the
acquisition price, was 5.5%.
Expectation for Internal Growth Capacity
The Fukuoka business district was impacted by large supply in 2009, the year the property
was completed, resulting in a downturn of rents. Because many of the tenants moved in
when rents were in a lower range, an increase in profitability can be expected with the
market recovery.
Changes in Supply and New Demand Trends and the Vacancy Rate in
Fukuoka's Office Market
Tenjin Sta.
Kuko Subway Line
Newly supplied space (left axis)
Average vacancy rate (right axis)
New demand space (left axis)
Fukuoka City
(thousand tsubo)
15.4
Office Tenjin 121 Bldg.
30
14.7
(%)
16
Daimaru
Tenjin Sta. Tenjin-Minami Sta.
13.2
25
12.6 (July 2012 results)
14
Iwataya
Mitsukoshi
11.0
20
12
Kokutai Street
15
8.4
10
8.1
Watanabe-dori
10
8
Nishitetsu Tenjin
←
July 2012 results
Inside of an office
Vibration control damper
Omuta Line
Watanabe-dori Sta.
The Yakuin
50
6
4
Business Garden
Kyushu Electric
New Otani
Hotel
-5
2
Power Co.
-10
0
2006 2007 2008 2009 2010 2011
2012
2013
2014
2015
Yakuin Sta.
Nanakuma Subway Line
Yakuin-Odori Sta.
Approx. 2-minute walk from Yakuin Station on the Nishitetsu Tenjin-Omuta Line and
Fukuoka City Subway Nanakuma Line
(Note) Data through 2011 was prepared by Tokyo Realty Investment Management, Inc. based on the Office Report
(Fukuoka CBD) published by Miki Shoji Co., Ltd. Data for 2012 and after were prepared by Tokyo Realty
Investment Management, Inc. based on its own survey.
Japan Prime Realty Investment Corporation
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