A joint venture between private equity major Warburg Pincus and Japanese real estate investment manager Eastgate Group has acquired Tokyo’s Shinagawa Seaside West Tower for an undisclosed amount.
Financial details of the acquisition were not disclosed. The deal marks the third transaction for the Warburg Pincus-Eastgate Group joint venture since its inception in 2023, according to an announcement.
Shinagawa Seaside West Tower is an 18-storey building offering over 410,000 square feet, equipped to accommodate both dry and wet labs, including up to biosafety level 2 laboratories.
The asset complements the JV’s earlier acquisitions in Yokohama, including the GRC Yokohama Bay Research Park and the GRC Yokohama Science Cube, per the announcement.
Warburg Pincus, through its Warburg Pincus Asia Real Estate Fund, and Eastgate Capital Management, part of Eastgate Group, initially formed the venture to address a significant shortfall in high-specification real estate for leasing in key Japanese cities.
“We have built a high conviction in Japan’s life sciences and R&D real estate sector, which is underpinned by several secular trends,” said Takashi Murata, managing director, co-head of Asia Real Estate, and head of Japan at Warburg Pincus.
The acquisition raised the JV’s managed gross floor area to over 1 million square feet and assets under management to more than $300 million, the companies said.
The partnership also officially unveiled the “GRC” brand, under which the JV’s properties will operate, providing specialized spaces tailored for life sciences, technology, and manufacturing tenants.
“As one of the first movers in this space, we have observed first-hand the critical undersupply of high-quality, well-managed R&D facilities and the resulting rental premium they command,” said Eastgate Group founder and CEO Shozo Sekine.
The deal followed Warburg’s acquisition of the Tokyo Beta portfolio, Japan’s largest share house portfolio, marking its entry into the country’s affordable rental housing market.
The Tokyo Beta portfolio comprises 1,195 assets and 16,192 rooms, representing over half of Tokyo’s share house market.
