GIC to buy stake in Tokyo office tower for US$558m

TOKYO - Singapore sovereign fund GIC Pte said on Tuesday it would acquire a 43 per cent stake in a 34-storey office building in Tokyo's central district of Shinjuku for $558 million (S$752 million), in one of the largest property transactions in Japan this year.

GIC will buy the stake for 62.6 billion yen from real estate investment trust Daiwa Office Investment Corp, according to a joint statement from GIC and Daiwa Office Investment.

"We have been investing in Japan for nearly 30 years and remain confident in Japan's continued growth in the long run," Lee Kok Sun, chief investment officer for GIC Real Estate, said in the statement.

This year, GIC acquired a 51 per cent stake in the Sheraton Grande Tokyo Bay Hotel near Tokyo Disney Resort for $464 million, from US buyout fund Fortress Investment Group.