Phoenix found a 20 year old, 23-storey Grade-B Office building in the Higobashi district, one of the traditional office markets in central Osaka. Its potential was enhanced by the location – close to Higobashi Station, on the Yotsubashi Line, and on the major Naniwasuji thoroughfare.

As part of a private off-market deal, we were able to acquire the property at a below-market price and due to our active asset management expertise we have been able to renovate and upgrade the common areas, increase the in-place rents to better reflect the commercial environment predicted over the next few years in Osaka. This has considerable increased operational cash flow.

Our efforts have resulted in enhancing the fabric of the property, its commercial viability and its inherent real estate value. This will allow us to exit by selling to investors seeking well-located, institutional-grade office space in the future.

Upon completion of the asset enhancement works and proactive leasing negotiations, Phoenix had the opportunity to capitalise on the investment and sold the investment to a foreign buyer in 2018.