NTT Docomo Inc. (DCMYY) has sold two central Tokyo land plots for about 59 billion, or $371 million, as Japan’s real estate market continues to draw heavyweight investor attention. The mobile phone operator sold land around a building in Hitotsubashi, Chiyoda Ward, to Sumitomo Corp. for around 50 billion, according to land registry records. It also sold land beneath a building in Shinjuku to Japan Post Real Estate Co. for about 9 billion. Docomo will continue to own both buildings, according to people familiar with the matter.
The move could give Docomo more funding flexibility at a time when its core consumer communications business, including mobile phones, remains under pressure. An NTT Docomo spokesperson declined to comment on the individual transactions, but said broader efforts to improve cost and asset-holding efficiency can lead to more funding. Japan Post Real Estate declined to comment, while Sumitomo Corp. representatives were not immediately available. The sales also come after Docomo’s operating profit fell for a fourth straight year in the 12 months ended March 31, with the company citing heavy equipment investment to improve communication quality and high promotional expenses.
For investors, the deal adds another data point to Japan’s booming property market, where foreign and domestic buyers including KKR 
KKR, PAG, and Blackstone Inc. 
BX have been chasing assets that have risen in price but are still viewed by market participants as having room for further gains. Bloomberg previously reported that Docomo was considering selling land tied to four Tokyo office buildings, with the total price expected to exceed 100 billion. One of those buildings was the iconic NTT Docomo Yoyogi Building, commonly known as Docomo Tower, but no deal for that site has been completed based on land registry data. The latest two land sales were completed by the end of March.
AloJapan.com