CBRE Supports Daiwa House Industry with Development of "GRANODE Hiroshima" Complex

Project paves way for future complex developments in other areas

CBRE (Japan Headquarters: Marunouchi, Chiyoda-ku, Tokyo) supported Daiwa House Industry Co., Ltd. (hereinafter Daiwa House Industry) with the development of GRANODE Hiroshima, a mixed-use complex development comprised of retail facilities, offices, and a hotel, located in the Futabanosato district in Higashi-ku, Hiroshima.

In February 2015, Daiwa House Industry contracted CBRE to provide a range of services to support the development of a large-scale complex to be built in Futabanosato, an area of vast redevelopment by JR Hiroshima Station’s north exit. CBRE combined its expertise in market research, development, design, and construction to propose a development plan that met the client's needs. To execute the plan successfully, CBRE was involved in every stage of the project including planning, operations, marketing, design advisory, lease management, administrative support, and set-up operations.

The project was completed in March 2019, transforming the area. The 20-story building with two basement levels has a total floor area of approximately 50,000m² and is the largest office building in the Chugoku and Shikoku region in terms of total rental space and floor area. The building consists of commercial facilities (floors 1-2), offices (floors 3-11), and a 197-room hotel (floors 13-20).

Hisayoshi Masuda (General Manager of Daiwa House Industry Shopping Center Department) who oversaw the project, said, "Our mid-term management plan calls for the ‘promotion of mixed-use developments in core regional cities’ and this project was the first step of that plan. As such, it was positioned as an important project that attracted a lot of attention both inside and outside the company. In order to create a building of high-value and competitiveness, we asked CBRE to supervise the overall development of the facilities. CBRE has a thorough understanding of tenant demand and customer needs for large-scale development projects and thanks to them, the project was successfully completed in March 2019. We were able to build a complex that embodied our original development concept and the tenant mix also exceeded our expectations. We were also able to achieve our goal of having 100% occupancy within one year of completion, for which we are very grateful. Furthermore, profitability exceeded expectations, and as a result, we successfully sold GRANODE Hiroshima (50% quasi co-ownership) to Daiwa House REIT Investment Corporation in April 2020. We were therefore also able to realize financial benefits from this development project."

Masafumi Yamagami (Director of CBRE Hiroshima Branch) also commented, "We are pleased to have been able to contribute to the revitalization of the station front area and support a major developer with such a large-scale project, one that has resulted in a new landmark for the city. In this project, our comprehensive services resulted in a high value-added facility, much to the satisfaction of the client. We will leverage this experience and use CBRE’s nationwide office market research to propose office developments in leading areas, in the hopes of continuing to contribute to the growth of local economies.

As a result of this successful project, CBRE will also be supporting Daiwa House with other development projects in other cities.
CBRE is currently supporting the following Daiwa House Industry development projects:

(tentative name) Chiba Fujimi Project
- 2-chome, Fujimi, Chuo-ku, Chiba-shi, Chiba
- 11-story building
- Total floor area: approximately 5,018 tsubo
- Standard floor size: approximately 300 tsubo
- Completion: scheduled for end of 2022

(tentative name) Funabashi Station Square Project
- 1-chome, Honcho, Funabashi City, Chiba
- 10-story building
- Total floor area: approximately 2,856 tsubo
- Standard floor size: approximately 200 tsubo
- Completion: scheduled for January 2023

Omiya Ward Sakuragicho Complex Building New Construction Plan
- 1-chome, Sakuragi-cho, Omiya-ku, Saitama-shi, Saitama
- 22-story building
- Total floor area: approximately 12,875 tsubo
- Standard floor size: approximately 513 tsubo
- Completion: scheduled for end of 2023

(tentative name) D Tower Toyama
- In front of Toyama station
- 7-story building
- Total floor area: Approximately 5,000 tsubo
- Completion: scheduled for summer 2023

Project Outline

For inquiries about this project
Masafumi Yamagami <[email protected]>
Tel. +81 82 243 9321
Director, Project, CBRE Hiroshima Branch

For inquiries about CBRE's real estate comprehensive development services
Takashi Katono <[email protected]>
Tel. +81 3 5288 9720
Executive Director, Office Services, Advisory & Transaction Services CBRE K.K.

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