British property company Grosvenor Group has moved into the Japanese retail sector with its purchase of a 10-storey shopping tower in Tokyo’s Ginza district, adding to its US$870 million in real-estate assets under management in Asia Pacific.

Its regional arm, Grosvenor Asia Pacific, acquired the 6610sqm property this week from Imabari Shipbuilding, which bought the building in February 2015 for an estimated ¥25 billion (US$209 million). Grosvenor has not revealed the value of the transaction.

“As we add prime retail to our investment and development focus, deepening our presence in the market, we are very pleased to have acquired Namikikan Ginza as a significant statement of our intent,” says Grosvenor MD Daniel Cox, who is also chief representative for Japan.

“We see great potential in Namikikan Ginza for its attractive location and believe we can use our skills to enhance its value,” says head of investment and asset management for Japan, Daijiro Murakami.

Built in 2008, the building houses shops and travel agencies, and exemplifies the vertical retail format (“Ginza-style”) that is catching on in Hong Kong, reports Mingtiandi.

Since opening a Tokyo office in 2001, Grosvenor has built up a portfolio of residential properties. The latest move follows its first investment in Hong Kong’s retail sector last December, a two-storey shopping podium.