SYDNEY, June 19 Property investment firm MGPA said on Tuesday it had purchased eight office buildings in Japan via defaulted commercial mortgage backed securities (CMBS) as it sees limited supply and strong demand for office space in Tokyo.
MGPA, 56 percent owned by Australia's Macquarie Group Ltd , did not disclose the financial terms of the deal but a source close to the matter said the purchase price was around 12 billion yen ($152.07 million).
MGPA said of eight properties, seven are located in Tokyo while the remaining are in Yokkaichi City in the Tokai region. The transactions were made for its opportunistic fund MGPA Asia Fund III, which was set up in 2007 with the investment period of 9 years and $3.9 billion of equity commitments.
"We are confident of delivering a solid return on investment in the short-term as well as growth potential over the projected holding period," Rio Minami, MGPA's managing director, capital transactions in Japan, said in a statement.
Minami also said the supply of new space in the Tokyo office market over the next several years would be 30 percent below the long term average.
MGPA has been looking at opportunities in Japan as more real estate loans mature, while lenders sell assets from borrowers unable to repay or refinance.
The total return for Japanese real estate investment stood at 3.7 percent for the year to February, slightly up from 3.4 percent in the year to December, according to property firm IPD. ($1 = 78.9100 Japanese yen) (Reporting by Eriko Amaha; Editing by Michael Perry)