Key Takeaways
- • Hines acquired New Stage Yokohama, a 17-storey, 50,304-square-metre office tower in Yokohama, marking the US developer's first-ever investment in Japan and the second acquisition for its flagship Hines Asia Property Partners fund launched in April 2021.
- • The asset will undergo comprehensive renovation from 2022 to mid-2023, with existing tenants including Mizuho Bank, Foodpanda, and companies across real estate, technology, R&D, automotive, and financial services sectors.
- • Yokohama's strategic location 30 kilometres from Tokyo Station, combined with its status as Japan's second-largest city with 3.8 million residents, positions the acquisition within the broader Greater Tokyo area commercial market.
- • The Hines Asia Property Partners fund's second acquisition follows the September 2021 purchase of a Brisbane office asset for A$205 million ($148 million), demonstrating the fund's core-plus strategy across the Asia-Pacific region.
Summary
Hines, the Houston-based international real estate developer, has completed its maiden acquisition in Japan by purchasing New Stage Yokohama on behalf of its flagship pan-Asian fund. The 1993-vintage office tower, located in Yokohama's submarket within the Greater Tokyo area, represents a significant geographic expansion for the firm's presence in Japan and the broader Asia-Pacific region. The acquisition price was not disclosed.
The 17-storey building comprises 50,304 square metres of gross floor area and will undergo substantial renovation beginning in 2022, with completion targeted for mid-2023. According to Drew Huffman, managing director at Hines, the renovation will deliver "Grade A office space complete with additional amenities, enhanced building features and significant outdoor activation." The property features expansive indoor and outdoor common areas, a large tenant dining area, an atrium-style lobby, a tenant sky lounge, and large column-free floor plates designed to accommodate modern workplace requirements.
The acquisition strengthens Hines' footprint in Japan's office sector, capitalizing on the building's existing tenant roster, which includes Mizuho Bank, Foodpanda, and enterprises operating in real estate, technology, research and development, automotive, and financial services. Yokohama's geographic advantage—located 30 kilometres from Tokyo Station in Japan's second-largest city with a population of 3.8 million—provides strategic access to metropolitan employment and consumer markets.
This transaction marks the second acquisition for the core-plus Hines Asia Property Partners fund, which launched in April 2021. The fund's inaugural deal occurred in September 2021, when it acquired a Brisbane office asset for A$205 million ($148 million), establishing a track record of opportunistic office acquisitions across key Asia-Pacific markets. The seller of New Stage Yokohama was not identified in the announcement, though Singapore-based investment firm Sigitech Holdings held the property as recently as 2017.
The 17-storey building comprises 50,304 square metres of gross floor area and will undergo substantial renovation beginning in 2022, with completion targeted for mid-2023. According to Drew Huffman, managing director at Hines, the renovation will deliver "Grade A office space complete with additional amenities, enhanced building features and significant outdoor activation." The property features expansive indoor and outdoor common areas, a large tenant dining area, an atrium-style lobby, a tenant sky lounge, and large column-free floor plates designed to accommodate modern workplace requirements.
The acquisition strengthens Hines' footprint in Japan's office sector, capitalizing on the building's existing tenant roster, which includes Mizuho Bank, Foodpanda, and enterprises operating in real estate, technology, research and development, automotive, and financial services. Yokohama's geographic advantage—located 30 kilometres from Tokyo Station in Japan's second-largest city with a population of 3.8 million—provides strategic access to metropolitan employment and consumer markets.
This transaction marks the second acquisition for the core-plus Hines Asia Property Partners fund, which launched in April 2021. The fund's inaugural deal occurred in September 2021, when it acquired a Brisbane office asset for A$205 million ($148 million), establishing a track record of opportunistic office acquisitions across key Asia-Pacific markets. The seller of New Stage Yokohama was not identified in the announcement, though Singapore-based investment firm Sigitech Holdings held the property as recently as 2017.
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