UPDATE 1-Mitsubishi Estate buys Tokyo buildings from Lone Star

* Developer buys office bldg complex, hotel in Akasaka

* Combined deal seen worth 90 bln yen ($1.1 bln) – Nikkei

* Mitsubishi Estate also bought office bldg in Washington,
D.C.

(Updates with more details)

TOKYO, March 28 (Reuters) – Japan’s Mitsubishi Estate Co
said it bought two office buildings and a hotel in
central Tokyo from U.S. investment fund Lone Star in a
deal media reports said was worth $1.1 billion.

The Japanese developer expects premier buildings with
quake-resistant construction to continue attracting tenants and
yield stable profits despite likely damage to the property
market from economic stagnation in the wake of this month’s
devastating earthquake and tsunami in northeast Japan.

Mitsubishi Estate purchased the 18-storey west
wing and 24-storey east wing of the Kokusai-Shin Akasaka complex
and an adjacent hotel on March 14. Total office floor space is
roughly 80,000 square meters, Mitsubishi Estate spokesman
Ryuichiro Funo said.

Funo declined to give financial details of the
deal but the Nikkei business daily reported that the total value
was estimated at about 90 billion yen ($1.1 billion).

In 2004, Lone Star bought the Kokusai Shin-Akasaka
development and other nearby buildings from Kokusai Motorcars
and incorporated them into its real estate fund, the report
said.

No comment was immediately available from Lone Star.

Mitsubishi Estate, which also sealed the purchase of a
10-storey office building in Washington, D.C., on March 23, may
tear down the Kokusai Shin-Akasaka complex to develop a new
project with cutting-edge facilities, the Nikkei report added.

Mitsubishi Estate shares dropped 2.2 percent to 1,389 yen
while the broader Nikkei 225 average lost 0.6 percent.
($1 = 81.325 Japanese Yen)

(Reporting by Mariko Katsumura; Editing by Edmund Klamann)

UPDATE 1-Mitsubishi Estate buys Tokyo buildings from Lone Star