Jones Lang LaSalle New Lease Agreement

One of Japan`s largest real estate companies, on behalf of the five other consortium members, today announced the appointment of Ritz-Carlton as operator of their major hotel development in Roppongi, central Tokyo.

According to Jones Lang LaSalle Hotels, who advised Mitsui Fudosan, under the terms of the agreement Ritz-Carlton will lease and operate Mitsui Fudosan`s proposed 250-room luxury hotel, which will be built above the 45th floor in their new super high-rise building complex on the 7.8 hectares former Defense Agency site in Roppongi. The new hotel is due to open in 2008.

“The proposed hotel will enjoy one of the best locations, best brands and best products in Tokyo, ensuring the hotel`s future success in an increasingly competitive market”, said Mr Scott Hetherington, Managing Director, Jones Lang LaSalle Hotels Asia. The proposed hotel will be Ritz-Carlton`s second hotel in Japan, after the first Ritz Carlton opened in Osaka in 1997.

Jones Lang LaSalle Hotels served as an advisor on behalf of Mitsui Fudosan as a lead member of the consortium, involved in contract structuring, operator selection and contract negotiation. “In bringing the prestigious Ritz-Carlton hotel brand to Tokyo, this deal forms as the second success for Mitsui Fudosan and the Jones Lang LaSalle Hotels team”, said Mr. Hetherington. The first strategic agreement on behalf of Mitsui Fudosan comprised the negotiation with the Mandarin Oriental Hotel Group to operate their 171-room hotel in Nihonbashi, Tokyo, to be opened in 2006.

“Traditionally, international operators have been reticent to commit to a long term lease. However, a presence in Japan`s key markets is so sought-after that we have seen several international operators accept lease structures in order to secure management rights,” said Mr Tomohiko Sawayanagi, Executive Vice President, Jones Lang LaSalle Hotels Tokyo. “Japanese owners have also acquired more a flexible attitude towards rent and investment structures over the past five years.


Such shifts in both parties have resulted in successful hotel lease transactions such as this particular project,” said Mr Sawayanagi.

Mitsui Fudosan is part of a consortium of six entities to redevelop the former Defense Agency site in Roppongi. Well known US firm Skidmore, Owings & Merrill have been appointed as the master architect of the project. “The 560,000 square meters project has a number of well integrated components within the complex including 292,000 square meters of office area and 51,000 square meters of retail area and 800 residential units”, said Mr Sawayanagi. In addition, the adjacent Hinokicho Park will be redeveloped as a vast open space, providing around four hectares of picturesque parkland to the central area. “
Recognised in Tokyo as the international centre of the city, Roppongi is home to a large number of embassies and foreign residents from around the globe. With several high profile developments currently under construction in Roppongi, the vibrant area strikes a successful balance between work and pleasure.