Japan’s second-largegest real estate investment trust is weighing a plan to raise tens of billions of yen in new capital to purchase office buildings in high-rent districts, signaling new interest in the nation’s reviving real estate market.
Japan Real Estate Investment, which is sponsored by property developer Mitsubishi Estate, aims to increase capital “as soon as possible” through an equity offering, Naoyuki Inoue, Chief Executive Officer of the REIT’s management company, Japan Real Estate Asset Management, stated in an interview on Sept. 12. He stated the company has started scouting out office properties to purchase but didn’t disclose the exact amount of the equity sale.
The plan comes as the Tokyo Stock Exalter REIT Index hit its highest close in more than two years on Tuesday, after the sector reversed a downtrfinish finishing last year. The sector has risen 17% this year, outperforming the benchmark Topix gain of 13%.
