RAYSUM initially secured first refusal rights.
We received information regarding the sale of a building along Ginza Chuo-dori that housed the flagship store of an apparel business, a type of sale rarely seen in the market. Part of the ground floor of the building was owned by a long-established store founded during the Edo period, and a major apparel company was using remainder of the building. The remainder of the building had a feature where all floors were connected by an open staircase, which narrowed the possible uses of the building and made it difficult to lease each floor separately. This posed a significant challenge when it came to handling the property as an income property. We took this challenge despite the difficulties mentioned and obtained the first refusal rights.
RAYSUM was aware of strong demand among wealthy overseas individuals.
We were well aware of the strong demand among several wealthy Asian clients for this building located on Ginza Chuo Dori, perhaps the most iconic street in Japan. Our speedy response was driven by the knowledge that this project required expertise in the discussions with the separate owner of part of the first floor. We viewed this as an advantage due to our accumulated expertise in similar projects over the years.
RAYSUM proceeded to engage in courteous discussions with said owner and successfully convert the building to single ownership.
As a result of courteous discussions with the first-floor unit owner, we were able to purchase the unit roughly one year after acquiring the rest of the property and thereby successfully convert the building to single ownership. We were able to transfer the property to our client as a prime asset that will generate stable earnings over the medium to long term while also ensuring liquidity in the event of any necessity for liquidity. This was done by significantly improving the area along the main street, acquiring the option to rebuild the entire building, and the property’s rarity in being along Ginza Chuo-dori.
Overview
| Name | Ginza 8-chome Building |
|---|---|
| Principal value enhancement method | Coordinate/consolidate land rights |
| Other value enhancement method | Create land for development, change use/increase floor area ratio |
| Age (at time of purchase) | 19 years |
| Land area | Approx. 130 tsubos (429 ㎡) |
| Floor area | Approx. 1,200 tsubos (3,966 ㎡) |
| Leasable area | Approx. 1,200 tsubos (3,966 ㎡) |
| Volume area ratio (designated) | 800% |
| Number of floors | 10 floors above ground/2 basement floors |
| Asset class | Commercial |
| Purchase date | September 2020 |
| Sale date | December 2021 |
| Sale price | 10 billion yen or more |