CASE STUDY: SHIBUYA FLAG BUILDING

Opportunity

Prudential Real Estate Investors sought to sell the Shibuya Flag Building in its role as fund manager for the asset. The landmark property is a five-minute walk from the Shibuya railway station and comprises nine floors above ground and two below, with a total area of 7,766 square meters (83,592 square feet). H&M Japan occupies the first four floors of the building, a lease that CBRE had negotiated on behalf of H&M for its Japan rollout in 2008. Prudential sought to market the high-profile retail property to an international pool of buyers, including those who had never invested in Asia previously, and keep the process confidential.

Solution & Outcome

CBRE set a benchmark for investment with the sale of the Shibuya Flag Building to Mori Trust Sogo REIT for $326 million. CBRE’s Institutional Investment Properties group in Japan collaborated with the Investment Consulting team, senior members of the Capital Markets team in Singapore and the Global Capital Markets team to accomplish the sale.

Before the formal marketing process began, CBRE engaged in a co-sell side agency scheme with a local trust bank. CBRE tapped into its global database to identify prospective buyers, then maximized its deep insight into those clients’ needs and priorities to assemble a competitive short list. CBRE then targeted investors in a strategic way through confidential, face-to-face discussions. These buyers included investors who had never previously bought in Asia but had an existing relationship with the wider CBRE Capital Markets team globally and a track record of acquiring high-profile retail properties. In the end, CBRE recommended a diverse short list, including multiple buyer types and geographies, and advised the seller throughout the process.