(Add details and background)
TOKYO May 27 Japanese real estate developer
Mitsui Fudosan Co said on Tuesday it would raise as
much as $3.6 billion through a share issue to fund its
investments in office and retail properties in Japan.
Mitsui Fudosan, which is developing Tokyo's central
Nihonbashi district, said it would sell as many as 110 million
new shares in Japan and abroad. Based on Tuesday's close, the
share sale would be worth 367.4 billion yen ($3.6 billion).
The new shares would represent 11 percent of the company's
total shares and the price will be set between June 16 and June
18, Mitsui said.
Mitsui Fudosan is raising money as Tokyo's property market
has rebounded after Prime Minister Shinzo Abe's aggressive
government spending and loose-money policies started to drive
the economy out of 15 years of deflation.
Analysts and property investors expect demand for space at
prime office buildings will keep increasing as Japanese
corporations boost their earnings.
Mitsui Fudosan, which also develops apartment buildings and
warehouses, said it expects more investment opportunities in
Tokyo ahead of the 2020 Summer Olympics.
Tokyo's vacancy rates for office buildings have been falling
and rents have started rising at some of the buildings. Vacancy
rates in Tokyo stood at 6.6 percent in April, down from 7.6
percent in October, according to Miki Shoji Co, a property
($1 = 101.8750 Japanese Yen)
(Reporting by Junko Fujita and Taiga Uranaka; Editing by Chris
Gallagher and Miral Fahmy)