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GIC RE BUYS 7 HIGH-END RESIDENTIAL BUILDINGS IN TOKYO

TOYKO and SINGAPORE, 16 Jul 2001

Latest investment strengthens real estate firm’s strategic efforts to build residential property portfolio in Japan

GIC Real Estate (GIC RE), the real estate investment arm of the Government of Singapore Investment Corporation, has acquired a 100% stake in seven high-end residential buildings in the prime district of central Tokyo for JPY 14.5 billion (about S$217.5 million). This transaction represents the first high-end residential property investment for GIC RE in Japan, and is part of GIC RE’s larger strategic efforts to build a portfolio of residential properties in Japan.

The seven high-end residential buildings, totalling 63 units, are located within two of the five central wards of Tokyo, namely Minato and Shibuya Ward. The average size of these units is about 200 sqm, and the average rent for these units is around JPY1,000,000 to JPY 1,800,000 per month (S$15,000 to S$ 27,000). The properties are currently tenanted to top executives of multi-national companies.

This transaction marks the latest real estate investment by GIC RE in Tokyo. It follows closely on the heels of GIC RE’s earlier acquisition of a 100% stake in Shibakoen residential building, a 54-unit residential property purchased in Oct 2000 in the Minato ward for JPY 2.1 billion (about S$31.5 million). Shibakoen residential building is currently tenanted to middle level executives of Japanese and multi-national companies.

Dr Seek Ngee Huat, President of GIC RE, said: “The locations are all expatriate ‘enclaves’ with well-established supporting amenities developed over the years to meet the lifestyle needs and preferences of foreign expatriates. Accessibility is excellent by subway lines. In some cases, they are just within walking distance from established office locations.“

He added: “The outlook of the premium segment of the expatriate housing market in Tokyo is positive, due to a limited supply and strong stable demand expected over the next few years. With the opening up of the Japanese market to foreign participations, we expect increasing interest from foreign entities in setting up operations in Japan.”

On the pace of GIC RE’s investments in Japan, Dr Seek said: “As a well-diversified global investor in real estate, GIC RE’s exposure to Japanese real estate will continue to be substantial. Despite the recent slow down, the long-term fundamentals of Japan remain sound. The accelerating disposal of non-performing assets presents a variety of investment opportunities not available before.”

GIC RE intends to continue to look for more investments in Japan particularily in Tokyo, and would continue to focus in the office and the residential sectors going forward. GIC RE has previously acquired a number of properties in Tokyo including the Shiodome City Center, which will be a major office landmark in Tokyo scheduled to be completed in early 2003.

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.