Macquarie Global Property Advisors (MGPA), a private equity real estate fund advisory company, has agreed to purchase an office building in Tokyo, Japan for US$52.3 million on behalf of MGP Fund II.

The property is a nine level office building in the Chiyoda ward of Tokyo, located near the Kudanshita subway station.  It has a gross floor area of 7,480 square meters and 11 car parking spaces.

MGPA Managing Director Simon Treacy said, “One of MGPA’s strengths is to buy properties and to turn them into investment grade buildings through refurbishment. With this building, we plan to undertake renovation works to improve the quality of the space for the tenants and attract higher rents.”

“The office market has continued to perform well in the first half of 2006, driven by strong demand on the back of a strengthening Japanese economy. We see strong growth in rents across Tokyo, in particular central Tokyo,” Mr Treacy said.

MGP Fund II closed in September 2005 with a combined equity commitment of US$1.3 billion. The Fund has made a combined investment of more than US$1 billion in the region, in cities such as Tokyo, Seoul and Hong Kong.

In Japan, MGP Fund II has already invested in an office building in Tokyo, along with a residential tower in Tokyo, a mixed use development in Kanazawa, and has announced today the acquisition and launch of a portfolio of residential properties in Sapporo and greater Tokyo. 

“The outlook for the Japanese real estate market remains very strong.  We continue to see opportunities here and expect to make further announcements in the near future,” said Mr Treacy.