Canada¡¯s BGO sold a large office building in central Tokyo at a profit to a local condominium developer that aims to convert the property to luxury apartments, tapping demand from wealthy home buyers.
The Tokyo-based developer Goldcrest spent about ?100 billion ($628 million) to acquire Pasona Square in the capital¡¯s fashion boutique-filled neighborhood of Aoyama. The 18-story building was originally the headquarters for the Japanese entertainment production company Avex, which sold the property to BGO in 2021 for around ?70 billion.
Real estate prices have soared in Japan as investors from both Japan and overseas rush to buy properties that are still considered relatively affordable. Goldcrest plans to eventually convert the office building to condominiums, reflecting the higher profits that developers may be able to earn from residential properties. That¡¯s partly because in an inflationary economy it¡¯s considered easier to pass on increased construction and labor costs to consumers rather than corporate clients.
Registration records show that Goldcrest acquired the building on March 25 from a limited liability company established by BGO. The Canadian real estate fund bought the property from Avex as music performance revenue tumbled because of the COVID-19 pandemic.
BGO didn¡¯t reply to an email seeking a comment. A spokesperson for Goldcrest declined to comment.
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