Japanese developer starts work on $1.4bn New York tower

Japanese developer Mitsui Fudosan has started work on a $1.4bn office tower in Manhattan. It will be the developer’s largest overseas investment to date. 

Mitsui Fudosan owns 90% of the project and reportedly paid about $260m last month for the  holding. The other owners are New York real estate firm Related Companies and Canadian investor Oxford Properties. 

The building will be 51-storeys high, with a floor area of 121,000 square metres, and will be part of the 28-acre Hudson Yards megaproject on Manhattan’s West Side.  

The tower does not currently have any signed leases, although a spokesperson for the development said Related was "in advanced negotiations with several tenants". If all goes to plan, the building will be ready for occupation in 2017. 

Yukio Yoshida, president of Mitsui Fudosan’s US division, said: "Hudson Yards is fast becoming one of the most desirable locations for top-echelon tenants. We are looking forward to being a central part of the success." 

The Japanese developer, which traces its history back to the 17th century, undertakes most of its work in Japan, but does have developments in other parts of the world. As well as the Hudson Yards scheme it is working on 1 Angel Court in the City of London. 

Blake Hutcheson, the chief executive of Oxford Properties, said: "The forward momentum at Hudson Yards is evident to everyone who walks by the development. Oxford is pleased to join Related in partnering with Mitsui Fudosan and commencing construction on 55 Hudson Yards.   

"Each organisation has deep experience and incredible portfolios of past developments and investments individually, and this new partnership will benefit from bringing the three together for the first time."