Mitsubishi Estate Sells Stake in $403M London Office Building to Daibiru

Daibiru Corp has acquired what it calls a major stake in a London office building reportedly put on the market last year for £300 million ($403.2 million) by the seller, fellow Japanese property player Mitsubishi Estate.

The eight-storey Warwick Court sits in Paternoster Square, a redeveloped area next to the landmark St Paul’s Cathedral in the City of London. The 2003-built office block provides 206,000 square feet (19,138 square metres) of net lettable area, following a large-scale renovation completed by Mitsubishi Estate and development partner Stanhope in 2022.

Warwick Court marks the second UK addition to Daibiru’s portfolio after the unit of shipping group Mitsui OSK Lines purchased the Capital House office building near the Bank of England from Barings last year for £169 million (then $228 million).

“London’s office market, where many Forbes Global 2000 companies have established their headquarters, remains highly attractive due to its strong liquidity and transparency as a core market,” Osaka-based Daibiru said Wednesday in a release. “Even after Brexit, the city has maintained its position as a leading international financial centre.”

Cathedral View

Located a two-minute walk from St Paul’s tube station at 5 Paternoster Square, Warwick Court features a rooftop terrace overlooking St Paul’s Cathedral and upgraded amenities including showers, lockers and gender-neutral restrooms, Daibiru said. Tenants include trading firm Mitsui Bussan Commodities and US investment manager T Rowe Price.

The asset’s £300 million value, which translates to £1,456 ($1,957) per square foot of net lettable area, was reported by local media including real estate information provider CoStar.

Daibiru’s overseas portfolio now comprises 10 assets in four countries, including a central Sydney office tower acquired from an Investa Property Group fund in early 2025 for A$600 million (then $378 million).

The Japanese firm’s previous investments Down Under include the A$240 million acquisition of Sydney’s 275 George Street development project in 2018 alongside TH Real Estate (now Nuveen Real Estate). Daibiru also took a half-stake in 7 Spencer Street, a Mirvac office development in Melbourne, in 2023.

Overseas Expeditions

Daibiru parent Mitsui OSK Lines in 2024 committed a respective S$130 million and S$131 million (then $97 million and $98 million) to the CapitaLand Southeast Asia Logistics Fund and CapitaLand India Growth Fund 2 (making the latter investment via Daibiru).

The infusions to the Singaporean giant’s private vehicles helped fund development of Thailand’s largest standalone warehouse and gave Daibiru a 25 percent effective stake in International Tech Park Chennai, Radial Road, a 2.6 million square foot campus catering to IT firms.

Also in 2024, Mitsui OSK Lines provided backing for Hankyu Hanshin Properties’ buy, alongside an unnamed Malaysian fund, of a A$3.2 billion logistics portfolio held by a joint venture of ESR and the Abu Dhabi Investment Authority.