A total of 36 million new shares will be sold while existing shareholders will sell five million shares. If an option for an additional six million shares is exercised, the offering would be worth 164.5 billion yen ($1.4 billion). That would make the offering the largest IPO this year, ahead of Nippon Commercial Investment Corp.'s $1.03 billion IPO, according to private research firm Dealogic. Nippon Commercial is a REIT fund and will list on Sept. 26.

The IPO price values Nomura Real Estate at about 22 times its forecast earnings for the year to next March, still below a price-to-earnings ratio of 36 for Mitsui Fudosan Co. Ltd. and 56 for Mitsubishi Estate Co. Nomura is expected to make a strong market debut when it lists on the Tokyo Stock Exchange on Oct. 3 given the growing strength of the Japan's property market.

Earlier this month, Tokyo saw its biggest-ever office investment deal--the $1.7-billion sale of the 420,900-sf offices in the Marunouchi building. And a recent government survey showed average land prices in Japan's three biggest cities rose in the year to July 1 for the first time in 16 years.