The Otemachi Tower (Land with Leasehold Interest)

A-23 Tokyo CBDs Office Very large Sponsor

Otemachi Tower as the new symbol of Otemachi

This site (land with leasehold interest) is a high-rise office building completed in 2014 in Otemachi, one of Japan's leading business districts. Connected directly to Otemachi subway station, the 200 meter-high building with 38 aboveground floors is becoming the new symbol of Otemachi. Part of an urban development project involving JPR sponsors Tokyo Tatemono and Taisei Corporation, it is comprised of an office area occupied by Mizuho Financial Group, a hotel area occupied by Aman Tokyo, the first Japanese branch of the luxury hotel chain, and a commercial area, Ootemori, featuring a diverse range of retailers including restaurants and shops. Unusually for central Tokyo, it also has an extensive green space, Otemachi no Mori, exceeding 1,000 tsubos in area. The building is therefore a place that offers both excitement and relaxation.
JPR acquired the land with leasehold interest (over 11,000 m2) with the support of its sponsors. The site lease agreement covers 70 years, so the building is expected to secure stable revenue over the long term. What's more, since only the land is owned, there will be no liability due to depreciation costs, which is expected to contribute to higher dividends.

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Related Press Releases

Notice Concerning Property Acquisition "Otemachi 1-6 Plan (tentative name) (land with land leasehold)"
Notice Concerning Change of Contract Date and Settlement Date, etc. for Property Acquisition (Otemachi 1-6 Plan (tentative name) (land with land leasehold))
Notice Concerning Completion of Property Acquisition "Otemachi 1-6 Plan (tentative name) (land with land leasehold)"
Notice Concerning Change of Property Name

Property Overview

Address Chiyoda-ku, Tokyo6-6 Otemachi 1-Chome
Structure/Floors -  - Acquisition Price (million yen) 36,000
Total Floor Space (m2) - Leasable Space (m2) 11,034.78
Completed - Standard Floor Space (m2)
Acquisition Date March 13, 2012 No. of Tenants 2
Related website
  • (Note1) The abbreviations of the “Structure/Floors represent the following, respectively:
  • S: steel-framed RC: reinforced concrete SRC: steel-framed, reinforced concrete
  • (Note2) The acquisition price indicates the transfer price stated in the real estate transaction agreement or trust beneficiary transfer agreement, rounded down to the nearest million yen, and excludes various expenses required for the acquisition of the relevant real estate, etc. and consumption tax, etc.
  • (Note3) The “Total Floor Space” indicates the area of the entire building (including the interests owned by other sectional owners or co-owners) based on the registry.
  • (Note4) The “Leasable Space” indicates the area of the portions owned by JPR.

Management Status

37th 38th 39th 40th
Rental Revenues (million yen) 1,783 1,793 1,797 1,802
Rental Expenses (million yen) 1,114 1,114 1,114 1,114
NOI from Leasing (million yen) 668 678 682 687
Depreciation (million yen) 0 0 0 0
Rental Income (million yen) 668 678 682 687
Capital Expenditures (million yen) 0 0 0 0
Period-End Occupancy Rate (%) 100.0 100.0 100.0 100.0
NOI Yield (%) 3.7 3.7 3.8 3.8
NOI Yield after Depreciation (%) 3.7 3.7 3.8 3.8
Appraisal Value (million yen) 51,800 51,800 52,500 52,500
Gain or Loss from Valuation (million yen) 13,411 13,411 14,111 14,111
Cap Rate (%) 2.6 2.6 2.6 2.6
  • (Note1) Period-end occupancy rate = Leased space/Leasable space
  • (Note2) Annualized NOI yield = (Rent revenue - Realestate expenses related to rent business) + Depreciation/Acquisition price
  • (Note3) Annualized NOI yield(after depreciation) = (Rent revenue - Realestate expenses related to rent business)/Acquisition price
  • (Note4) Unrealized gains or losses = Appraisal value - Book value
  • (Note5) Cap rate indicates the capitalization rate by the direct capitalization method. Direct capitalization method is one of the methods to calculate the value estimated by income approach (a method to estimate the value of the target property by calculating the sum total of present value of the net operating income which the target property is expected to generate in the future), and capitalizes the net operating income of a certain period by using the capitalization rate.
  • (Note6) The amounts and areas are rounded down to the nearest specified unit, and the percentages and other figures are rounded off to the nearest specified unit.

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