Acquisition - Brokerage of Prime Retail Assets in Tokyo
In April 2011, C&W sourced market information that a certain real estate investor was thinking of selling two retail properties. The assets were located in prime Tokyo sub-markets of Shinjuku and Harajuku. C&W used its relationship through its Asset Management business with the investor to get information early in the sales process. Shinjuku Citibank Building is located close to Shinjuku Station, the busiest station in the world in numbers of passengers daily, with Citibank the anchor tenant occupying floors 1-4 in the building. Niconico Building is located in the center of the Harajuku fashion district. C&W introduced the opportunity to a cross-border institutional investor who presented interest in acquiring retail assets in Tokyo. Leveraging its relationships with Senior Management of the client, C&W was able to negotiate and obtain an exclusive window to negotiate the deal for its client as well as the subsequent first right to purchase both assets.
The client did not have experience acquiring or managing retail assets in Japan. C&W needed to support the client through the entire sales process, provide accurate market data and comparable information and support in the business case process for Investment Committee approval. Over the course of two months, C&W supported the client through the due diligence period and detailed negotiations resulting in a closing after the client was able to make a fully informed business decision to purchase the properties within the limited exclusive time period. C&W insisted upon and was able to get the seller to agree to take full liability for existing or future defects for the properties. This allowed the client to minimize its risk in the transaction and also helped in gaining Investment Committee approval.
The client was successful in acquiring two prime properties through exclusive negotiations with the seller, and acquired its first retail assets in Japan.