Hankyu REIT has reduced the monthly rent at its property known as Hotel Gracery Tamachi by approximately JPY1.44 million, or about 7.4%, effective from 30 September 2013.
The reduction came after a court case which saw the property’s tenant, Fujita Kanko Inc, taking legal action against the REIT.
Fujita Kanko has initially pressed for a 23.5% reduction in rent, although reasons for this demand was not disclosed by the REIT.
Hankyu REIT said that it considers this demand “to lack reasonable grounds” and filed a counterclaim against Fujita Kanko.
The rent reduction of 7.3% was eventually reached after a recommendation by the Tokyo District Court for both parties to settle the legal action privately.