Japanese REIT buys office property

Japan Real Estate Investment Corp., is under contract to purchase AER, an office building in Sendai, Japan, from Secured Capital for ¥18.64 billion ($150.5 million).

The 254,160-square-foot building is 97 percent occupied and is home to Monceau Fleurs, a French flower shop; Uniqlo, a clothing brand; and Nikon. Close to the Sendai station, the Tohoku expressway and the Sendai airport, the property also features a multi-purpose hall.

Mitsubishi Jisho Property Management will be leasing the office units, while the retail units will be leased to CROPS, Inc., according to a statement. These companies will then sublease to tenants.

The office building was built in 1998 and was acquired by Secured Capital in 2007 for approximately ¥32.1 billion ($258.1 million) from the City of Sendai.

The deal is expected to close by Sept. 1. The 31-story office building is the seventh office acquisition this year by Japan Real Estate Investment.