Japan Reit market surges to 12-year high

The main benchmark tracking Japan’s real estate investment trust market soared to a 12-year high on Thursday as investors bought into an unprecedented hostile takeover battle and Tokyo office rents rose for a 65th successive month in June. The rise in Japan’s $130bn J-Reit market comes despite warnings from executives involved in the situation who say the impending proxy fight over Sakura Sogo Reit could ultimately “destabilise” a sector known for its solidity. Thursday’s sharp rise of the TSE J-Reit index follows almost two years of steady gains as Japanese interest rates remain at zero and large parts of the country’s government bond yield curve have entered negative territory.