Hulic REIT Investment Corporation Executes Asset Swap | June 2026

Overview of Asset Swap

Hulic REIT Investment Corporation will acquire beneficial interests in office buildings and commercial facilities in Ginza on June 25, 2026, while transferring underlying land and office buildings in the Tokyo metropolitan area. The acquisition assets total approximately JPY 22.863 billion, the transfer assets approximately JPY 21.330 billion, with an exchange differential of about JPY 1.533 billion. The acquired properties are characterized by their prime locations, seismic resilience, and energy efficiency, aiming for long-term asset management. The assets being transferred are older properties and those under long-term lease agreements, with the goal of reducing future repair and maintenance costs. This exchange aims to enhance portfolio competitiveness and profitability.

Future Outlook and Background

Through this exchange, the fund will reconfigure its portfolio mainly with high-quality assets in prime Tokyo locations. The exchange is scheduled for June 30, 2026, and is expected to have limited impact on operational income due to asset replacement. The acquired assets feature environmental measures and BCP preparedness, ensuring long-term revenue stability. Conversely, the transferred assets, being older and less profitable, aim to reduce future costs and improve overall asset quality.