On September 26, Imperial Hotel announced plans to sell a 35% share of the land under its tower building in its Tokyo property to Mitsui Fudosan for 62 billion Yen (approx. US$416 million). This purchase price works out to around 15 million Yen per square meter (US$9,300/sq.ft), which is approximately 93,600 times its book value.
The Tower is a 31-story office and retail building built in 1983. The building is scheduled to close in June 2024, with redevelopment to commence shortly after.
The sale is likely related to the large-scale redevelopment planned for the Imperial Hotel and neighboring blocks. The Uchisaiwaicho 1 Chome District Redevelopment will see the Imperial Hotel demolished and replaced with a new 145m tall hotel to open sometime in the mid 2030s. The Tower building behind it will be replaced with a 230m tall building containing retail, office, serviced apartments and residential space, with completion by 2030. The two blocks to the south will contain two 230m tall commercial towers by 2028. Altogether, the four high-rises will have a gross floor area of 1.1 million sqm (11.8 million sq.ft).
The Imperial Hotel has been occupying this corner since 1890. The current hotel was built in 1970.
Source: Imperial Hotel News Release, September 26, 2023
