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REFILE-Sekisui House buys debt-laden Tokyo property for $720 mln -sources
March 28, 2014 / 2:45 AM / 4 years ago

REFILE-Sekisui House buys debt-laden Tokyo property for $720 mln -sources

(Corrects name of building in paragraph 3 to Kokusai Akasaka, not Akasaka Kokusai)

By Junko Fujita

TOKYO, March 28 (Reuters) - Japan’s Sekisui House Ltd is buying an office tower in central Tokyo for 74 billion yen ($720 million), as property prices rise to levels that allow lenders to recoup losses from a bust that followed the global financial crisis.

With this deal, expected to close by Monday, Tokyo’s prime commercial property market is finally putting behind it an ill-fated series of highly leveraged investments that failed spectacularly when a 2006-2007 real estate boom went bust in the wake of the Lehman Brothers bankruptcy.

The Osaka-based home builder has agreed to buy the 20-storey, 41-year-old Kokusai Akasaka Building in an upscale commercial and business district, according to four people briefed on the deal.

The value of the property had cratered after it was bought in 2006 by aggressive property investor K.K. daVinci Holdings for about 100 billion yen, almost entirely financed by debt. (Reporting by Junko Fujita; Editing by William Mallard and Edmund Klamann)

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