Japan's Mitsui Fudosan to develop $3.6 billion office tower in New York

TOKYO (Reuters) - Japanese property developer Mitsui Fudosan Co 8801.T said on Friday it would take a 90 percent stake in an office tower in New York that would cost more than 400 billion yen ($3.6 billion), its largest investment in a single building overseas.

The 58-storey building, 50 Hudson Yards, in Manhattan’s Hudson Yards office and retail complex will be one of the largest standalone office properties in the area, Mitsui Fudosan said in a statement. The building, with 2.79 million feet (260,000 square meters) of floor area, is expected to be completed in 2022, it said.

Mitsui Fudosan, which has been aggressively developing office properties in Tokyo, said it has positioned overseas business as one of a growth area.

In Tokyo, office rents are expected to fall as the capital adds office space ahead of the 2020, when the city hosts the Olympic games, while the metropolitan government expects Tokyo’s population to start falling after 2025.

Reporting by Junko Fujita; Editing by William Mallard