Investor Presentaiton
JPR
Property Acquisition in the 21st Period
Improved portfolio quality and stability of earnings through acquisition of a property in a prime location for domestic offices
1. Property Overview
Location
Site area /
Type of ownership
Otemachi 1-6 Plan (tentative name)
(ownership of land with land leasehold)
2. Outline of Leasehold
Form of agreement/
agreement period
3. Transaction Summary
Seller
Type of asset
Acquisition price
Appraisal value
Acquisition date
4. Yield
6-6, etc., Otemachi 1-chome, Chiyoda-ku, Tokyo
11,034.78m² / Beneficiary interest in real estate (land
with surface rights establishment agreement)
Contract to set surface rights Surface rights / 70 years
Tokyo Prime Stage Y.K.
(SPC established jointly by Tokyo Tatemono Co., Ltd
and Taisei Corporation)
Beneficiary interest in real estate
36,000 million yen
36,800 million yen (as of June 30, 2012)
March 13, 2012
Exterior perspective
Characteristics and Reasons for Acquisition
■Superiority in a prime location for
domestic office buildings
◉
Ensure long-term stable earnings based
on a contract to set surface rights for 70
years
■There is no depreciation burden, so the
property contributes highly to dividends
The property's yield (after depreciation)
is 3.6% (Note), surpassing the average
yield after depreciation of JPR's office
buildings in Tokyo CBDs.
Preferential negotiating rights are
granted for cases of transferring, etc.
currently planned buildings, etc.
Yield after
depreciation (Note)
3.6%
5. Overview of Building under Project
Development project for high-rise complex building with 38 floors above ground and
total floor space of approx. 198,000m² is currently underway, with construction
completion scheduled for end of April 2014. Occupancy by leading Japanese
financial institution in office portion and world-class hotel on higher floors are
planned.
Concerning the rent review article
Rent will be reviewed when there is an
A: increase or reduction of property and other taxes, or
B: change in the consumer price index
in the base year of property tax.
(However, rent will also be adjusted if there is change in
property and other taxes other than in the base year.)
As such, the provision for rent review will not be impacted by
changes of rental revenue, etc. of currently planned buildings.
Rent
(2,817 million yen/year) (Note)
(Note) Yield after depreciation is calculated by using annual earnings
and expenses estimated exclusive of extraordinary factors of
the fiscal year the property was acquired in (they are not the
figures expected for the current fiscal period under review). It
is calculated by dividing the rental business income (where
property and other taxes, etc. are subtracted from annual rent)
by the acquisition price. The figure is rounded to the first
decimal point.
ΝΟΙ
(Rent Property and
other taxes, etc.)
Property and other
taxes
(Property tax, etc.: 1,512
million yen/year) (Note)
(Note) Figures for rent and property tax, etc. are the annual amounts after the fiscal 2012 review based on the contract to set surface rights.
Net rental income (NOI),
which is rent subtracted by
property and other taxes, is
reviewed in conjunction with
the consumer price index
(Statistic Bureau, Ministry of
Internal Affairs and
Communications)
When there are changes in
property and other taxes,
the same amount will be
reviewed in rent
Location map
Tokyo Metro
Chiyoda Line
Tokyo Metro
Hanzomon Line
Otemachi
1st Square
Tokyo Metro
Marunouchi Line
Tokyo Metro
Tozai Line
Otemachi Sta.
Uchibori-dori
Shin-Marunouchi
Bldg.
Toei Mita Line
Tokyo Metro
Tokyo Sta.
Marunouchi Bldg.
Otemachi 1-6 Plan
(Land with Leasehold
Interest)*
Marunouchi Nihonbashi
North Gate Gate
JR Tokyo Sta.
Marunouchi
Central Gate
Japan Prime Realty Investment Corporation
Image of Underground Plaza
(tentative name)
Image of Otemachi Forest
(tentative name)
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