Brookfield Confirms Deal to Buy Dentsu Tokyo Headquarters Building

Brookfield Asset Management on Thursday confirmed that it has agreed to buy the headquarters building of ad agency Dentsu Group, with the North American giant signalling plans to continue its expansion in Japan’s real estate market.

Mingtiandi reported Wednesday that Brookfield was nearing a deal to acquire the Dentsu building and that an announcement was imminent, with market sources indicating a transaction value of JPY 300 billion ($1.9 billion) for the 48-storey tower in Tokyo’s central Minato ward.

The latest milestone comes just over a year after Brookfield acquired a 30 percent stake in Meguro Gajoen, home to the Japan headquarters of e-commerce giant Amazon, in a deal valuing the western Tokyo commercial complex at about JPY 160 billion.

“The Dentsu office tower in Tokyo is an iconic asset located in one of the world’s strongest office markets,” said Ankur Gupta, Brookfield’s head of Asia Pacific and Middle East real estate. “The investment aligns with our strategy of acquiring high-quality assets in irreplaceable locations and creating value through hands-on operational expertise. We have strong conviction and confidence in Japan where we continue to grow our presence.”

Hulic’s Hit

The 2002-built Dentsu building comprises 1.3 million square feet (120,774 square metres) of net lettable area, with the asset poised to change hands at JPY 230,769 ($1,507) per square foot at the indicated price. 

An investor group led by Japanese developer Hulic had purchased the tower from Dentsu less than five years ago in a sale-leaseback transaction valuing the property at JPY 270 billion (then $2.5 billion), according to data tracked by Savills.

Although Hulic is selling at a nominal gain of JPY 30 billion, the yen’s weakness in the interim means the builder is set to divest the property for roughly $600 million less than it paid in dollar terms.

Designed by French architect Jean Nouvel, the Dentsu skyscraper is a landmark in Minato ward’s Shiodome district and serves as the global head office of the world’s fifth-largest ad agency.

Dentsu said in 2021 that it was offloading the building as part of measures to simplify the business, structurally and permanently lower operating expenses, enhance the efficiency of the balance sheet and maximise long-term shareholder value.

In the final weeks of 2025, the ad group announced the sale of its former headquarters on Tokyo’s Ginza commercial strip for JPY 30 billion ($190 million) as part of a broader move to improve its business performance and returns for investors. 

On Friday, Dentsu posted its biggest-ever net loss of JPY 327.6 billion ($2.1 billion), ballooning from JPY 192.2 billion in 2024, and announced that Takeshi Sano would take over as the group’s president and CEO, with Hiroshi Igarashi stepping down.

Fundamental Strengths

In his announcement Thursday, Brookfield’s Gupta pointed to strengths in Japan’s office market, including resilient rents and occupancies, a strong in-person work culture and a deep, diversified corporate demand base.

“We expect to commit further capital to office across the region and apply our operational focus of managing for value, not just occupancy, while building long-term relationships with our tenants,” he said.

Canada’s Brookfield is adding its Tokyo trophy amid a wave of overseas fund managers buying up landmark buildings in the city.

In early 2025, US private equity titan Blackstone acquired a Chiyoda ward commercial complex, Tokyo Garden Terrace Kioicho, from Seibu Holdings for $2.6 billion, marking the largest-ever real estate acquisition by a foreign investor in Japan.

Also in last year’s first half, Hong Kong-based Gaw Capital Partners teamed with Singaporean group Patience Capital to buy the Tokyu Plaza Ginza mall for $1 billion.

Private equity majors KKR and PAG closed out 2025 by announcing their acquisition of Sapporo Real Estate in a deal valuing the brewing giant’s property assets and operations at JPY 477 billion ($3 billion). Those assets include Yebisu Garden Place, a mixed-use complex spanning an 83,000 square metre site in Shibuya ward.