Fortress Finds Bargain in Non-Office Assets and Debt in Japan – Bloomberg 01-08-13

Salient to Investors:

Thomas Pulley at Fortress Investment plans to buy real estate debt backed by rental apartments, retail space and business hotels in Japan’s metropolitan areas. Pulley says the deleveraging and asset-cleansing process has occurred more at the mid-size than the larger properties.  Pulley is underweight offices because the differential between rent in place relative to market rent is more severe.

Moddy’s estimates a record 700 billion yen of commercial buildings are to be sold over the next 2 years to repay debt.

Miki Shoji said the office vacancy rate rose to a record high in June in Tokyo’s five central wards, pushing rents to a record low.

Read the full article at http://www.bloomberg.com/news/2013-01-09/fortress-finds-bargain-in-non-office-assets-and-debt-in-japan.html.

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