Japan and Australia lead real estate sale leaseback transactions in APAC

The region recorded a total of USD12b of sale leaseback deals in 2021.

Sale leaseback transactions in Asia Pacific reached US$12.0 billion in 2021. Data from CBRE suggest that Japan led with US$5.8 billion as corporates including Dentsu Group, Sanyodo and Heiwa Tekko divested of office properties. 

According to CBRE, Australia recorded a significant amount of sale leaseback activity over the year, particularly in the industrial sector, where investor demand has been very strong. The most significant transaction involved QANTAS divesting out of industrial buildings and land located around the Sydney International Airport for approximately US$580 million.

Here’s more from CBRE:

Corporate disposals most prevalent in Mainland China and Korea 

Total corporate property disposals (vacated by owner) in Asia Pacific reached US$32.4 billion in 2021. Mainland China saw the largest amount of activity, accounting for US$13.0 billion worth or 40% of corporate disposals regionwide, primarily due to the sale of numerous development sites and older assets for redevelopment. 

Korea also experienced a high volume of corporate disposals, achieving US$7.5 billion in 2021. Many transactions in this market involved older retail and office assets for redevelopment. Major deals included E-mart’s sale of its store in Gayang (Seoul) to Hyundai Engineering and Construction for approximately US$600 million for redevelopment.