TOKYO, Aug 7 (Reuters) - Japan's Orix Corp and New York investors Angelo Gordon & Co are seeking around $390 million for their stake in a well-known Tokyo office building as the property market in Japan's biggest cities heats up.
A property arm of the Japanese financial company and the U.S. alternative investment firm hope to get about 40 billion yen for the 80 percent stake they bought in the 26-storey Kioicho Building in central Tokyo in March 2012, said three people with direct knowledge of the deal.
An Orix spokesman and an official at Angelo Gordon declined to comment. The people declined to be named as the matter remained confidential.
Land prices in Tokyo, Osaka and Nagoya - Japan's largest metropolitan areas - rose for the first time in six years last year spurred by investment, according to government surveys.
In the prime Marunouchi district near Tokyo Station, property investor Secured Capital Investment Management Co is looking for a buyer for a 32-storey office tower for around 180 billion yen.
Orix and Angelo Gordon bought the stake in the 25-year-old Kioicho Building from developer Mori Building Co before the Tokyo property market recovered from a market crash in the wake of the global financial crisis.
Now the property market is showing steady signs of recovery, with office vacancies falling and rents starting to pick up.
A buyer paying 40 billion yen could expect a 3.3 percent annual return on the property, the sources said.
The first bid will close this week, they said. The owners for the remaining 20 percent stake in the property are not prepared to sell, the people added. (Reporting by Junko Fujita; Editing by William Mallard and Miral Fahmy)