Key Takeaways
- • Sotetsu Urban Creates sold two properties, Sotetsu Izumino Station North Exit Building in Izumi Ward, Yokohama, and the land under Sotetsu Fresa Inn Kamakura Ofuna Station Kasamaguchi in Kamakura, to a private fund on September 30, 2026, as announced October 1, 2026.
- • The buyer is a godo kaisha managed by Sotetsu Real Estate Investment Advisors, a wholly owned subsidiary of Sotetsu Urban Creates, marking the Sotetsu Group's first private real estate fund.
- • Investors include Sotetsu Urban Creates (making a same-boat investment), Toshin Development, The Bank of Yokohama and Resona Leasing; The Bank of Yokohama and Kansai Mirai Bank provide financing.
- • The sale price was not disclosed.
- • The transaction supports the group's medium-term plan (fiscal 2025–2027) priority of strengthening the real estate business by creating fund fee income tied to development-type funds for large-scale projects.
Summary
The assets are the Sotetsu Izumino Station North Exit Building (Sotetsu Life Izumino) at 6214-1 Izumicho, Izumi Ward, Yokohama, and the land under Sotetsu Fresa Inn Kamakura Ofuna Station Kasamaguchi at 1-26-5 Ofuna, Kamakura. The Izumino property, completed in May 2014, is a community-oriented retail facility in front of Izumino Station on the Sotetsu Izumino Line. It has a gross floor area of approximately 2,748 tsubo (about 97,800 sq. ft.) on a site of roughly 4,304 tsubo, and houses retail tenants, a clinic and a nursery school. The Ofuna site, about 161 tsubo (roughly 5,700 sq. ft.), lies one minute from the Kasamaguchi exit of JR Ofuna Station and is the birthplace of the Sotetsu Fresa Inn brand.
Investors in the fund are Sotetsu Urban Creates, Toshin Development Co., Ltd., The Bank of Yokohama, Ltd. and Resona Leasing Co., Ltd., with Sotetsu Urban Creates making a same-boat investment. The Bank of Yokohama and Kansai Mirai Bank, Limited are lenders.
The sale is part of the "fundamental strengthening of the real estate business," a priority measure in the Sotetsu Group's medium-term management plan for fiscal 2025–2027. According to the announcement, the group intends to generate a new earnings stream from fund fee income and link this to the use of development-type funds for large-scale projects.
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