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GIC RE BUYS KAWASAKI TECH CENTER IN GREATER TOKYO

TOYKO and SINGAPORE, 23rd Aug 2001

S$220m acquisition of Kawasaki Tech Center marks the first office-cum-data centre investment by global real estate firm in Greater Tokyo

GIC Real Estate (GIC RE), the real estate investment arm of the Government of Singapore Investment Corporation, has acquired a 100% stake in Kawasaki Tech Center (KTC), an office-cum-data centre building in the city of Kawasaki for JPY 14.8 billion (about S$ 220 million). This transaction marks the first office-cum-data centre building investment by GIC RE in greater Tokyo. It follows closely on the heels of GIC RE’s earlier acquisition of a 100% stake in a portfolio of seven high-end residential expat buildings in the central wards of Tokyo.

KTC is a 20-storey office-cum-data centre building located in Kawasaki in the vicinity of Kawasaki train station. Kawasaki is an established manufacturing and industrial area within greater Tokyo and is a 20-minute train ride from central Tokyo along the Japan Railway’s Tokaido Line.

Dr Seek Ngee Huat, President of GIC RE, said: “KTC’s strategic and convenient location has attracted many reputable foreign and local industries to the building. The building is fully equipped with ample power supply, fibre optic lines, a tight security system plus various facilities that meet the needs of data centre users.”

He added: “The building’s competitive edge is in attracting corporate tenants who have preference for locating their back office and technology support functions outside central Tokyo. For these reasons, KTC is almost fully tenanted.”

On the pace of GIC RE’s investments in Japan, Dr Seek said: “As a global real estate investor, GIC RE’s exposure to Japanese real estate will continue to be substantial. Despite the recent slow down, the long-term fundamentals of Japanese Real Estate remain sound. With the launching of the first batch of J-Reit funds in September 2001, the competition for completed office building will continue to be heated up.”

GIC RE intends to continue to look for more investments in Japan, particularly in Tokyo, and will still continue to focus in the office and the residential sectors going forward.

About GIC Real Estate
GIC Real Estate Pte Ltd (GIC RE) is a pre-eminent global real estate investment manager. The firm manages a multi-billion dollar portfolio of direct and indirect property investments worldwide. GIC RE is the real estate investment arm of GIC, a fund management company established in 1981 to manage the foreign reserves of Singapore by investing globally. Reflecting its global orientation, GIC RE operates out of offices in key financial centres around the world and is headquartered in Singapore.