Kuwaiti Fund Buys Newark, N.J., Tower That Houses Panasonic North America

A Kuwait-based investment fund has paid $165 million for a Newark tower that houses Panasonic Corp. of North America’s headquarters.

KFH Capital Investment Co., which manages the fund, closed the deal to buy the 337,500-square foot building from SJP Properties and Matrix Development Group.

The sale is another sign that international investors are pushing out to the areas surrounding major markets such as New York City and San Francisco in search of better prices and higher yields.

The tower drew interest from investors in Malaysia, Japan, China, the Middle East and the U.S., Mr. Dunne said.

The Panasonic brand attracted investors, because Panasonic is viewed as a stable company with a strong credit profile. Panasonic has 15 years remaining on its lease at the building.

The building’s proximity to Manhattan was another draw.

The property’s modern amenities also appealed to KFH Capital.

SJP, which developed the building for Panasonic in 2013, recognized several years ago that downtown Newark was undergoing a transformation, with upscale retailers coming in, apartment-building renovations and new construction in the works.

Those improvements, in addition to a vibrant student population drawn to the city’s academic institutions as well as extensive mass transportation, are at the heart of the city’s growing attraction for real estate investors, despite its gritty reputation.