| TOKYO/SINGAPORE, April 9
TOKYO/SINGAPORE, April 9 Singapore state
investment firm GIC Pte Ltd will buy a Tokyo property
from U.S. investment fund Lone Star Funds for some 134 billion
yen ($1.3 billion), the highest price since Japan's real estate
market recovery accelerated last year, three people with direct
knowledge of the sale told Reuters.
Lone Star had put up the property, called Meguro Gajoen, for
auction late last year for at least 96 billion yen. The property
comprises a complex of office towers, with the Japanese unit of
Amazon.com Inc its main tenant.
GIC was chosen from three final bidders, which included a
consortium of New York-based real estate investment firm Aetos
Capital Real Estate LP and China's sovereign fund China
Investment Corp, two of the people said.
A GIC spokeswoman in Singapore declined to comment. Lone
Star officials were also not immediately available to comment.
Japan's real estate market is rebounding as Prime Minister
Shinzo Abe's aggressive reforms start to pull the economy out of
15 years of deflation.
Land prices in the three largest cities of Tokyo, Osaka and
Nagoya rose for the first time in six years last year and
declines slowed elsewhere, a government survey showed last
GIC has been buying up real estate in developed markets as
property prices recover from lows hit during the 2008-2009
global financial crisis.
In January, it partnered with the Abu Dhabi Investment
Authority (ADIA) and U.S. real estate firm Related Companies to
buy $1.3 billion worth of Manhattan office space from Time
Prior to that deal, GIC partnered British Land Co Plc
to buy London office and retail space from U.S. private
equity firm Blackstone Group LP.
($1 = 102.1100 Japanese Yen)
(Reporting by Junko Fujita in TOKYO and Saheed Azhar in
SINGAPORE; Editing by Miral Fahmy)