Real estate investment firm BGO has sold the Pasona Square office building in Tokyo for $628 million to a condominium developer, Bloomberg reported. The transaction ranks among the largest single-asset property deals in Japan so far this year and reflects continued appetite from domestic buyers for premium urban real estate even as office demand in many global markets remains uncertain.
The buyer's interest in an office tower is notable given its background in residential development. The purchase could signal a conversion strategy, a bet on continued rental demand in central Tokyo, or a longer-term land play, though specific plans for the building were not disclosed.
Tokyo's commercial real estate market has remained relatively resilient compared to other major cities, supported by low vacancy rates in premium office districts and a weak yen that has attracted foreign capital. Office absorption in central Tokyo has held up better than in cities like San Francisco or London, where remote work has created sustained vacancy pressure.
BGO, formerly known as BentallGreenOak, is a global real estate investment management firm managing properties across North America, Europe, and Asia. The Pasona Square sale represents a significant capital event for the firm's Asia portfolio. Pasona Group, a Japanese staffing and human resources company, had previously been associated with the building as a major tenant and namesake.
Terms beyond the sale price were not disclosed. The deal adds to a string of large-scale property transactions in Tokyo as investors reposition portfolios ahead of potential interest rate adjustments by the Bank of Japan.
