Tokyo-based KK DaVinci is to sell a fund management unit responsible for managing the J-REIT DA Office Investment Corporation, to Daiwa Securities Group, Japan’s second largest brokerage.
According to a report by Reuters, Daiwa is to purchase a 13 percent stake in DA Office Investment Corporation for ¥10 billion ($103.7 million) in addition to paying ¥3.4 billion for DaVinci Select, the firm that manages the REIT’s portfolio of office buildings.
KK Davinci has faced pressure of late to sell assets in order to meet its debt obligations, according to the report. The firm has seen its share price lose three quarters of its value over the last year.
The firm, led by founder Osamu Kaneko, is trying to dispose of a trio of prime office buildings in Tokyo also. Pacific Century Place, the Shiba Park Building and the Akasaka Kokusai building, were purchased for about $4.5 billion in 2006, but it is unclear as yet whether KK DaVinci will be able to either find buyers for the properties or sell them for a similar price.
KK DaVinci did, however, complete the sale of Lietocourt Arx, a residential tower in the city to Kuwait’s St Martin’s Group for $142 million earlier this year.