Friday, August 31, 2012

Saizen Reit offloads Japan property for 86m yen

Business Times: Fri, Aug 31

SAIZEN Real Estate Investment Trust has divested its property Rise Kojo Horibata in Kumamoto, Japan for 86.0 million yen (S$1.4 million).

The Reit, through Yugen Kaisha Shinzan, entered into and completed the sale and purchase agreement with an independent private investor yesterday.

A valuation by Le Futur Corporation on June 30, 2012, pegged the property's value at 73.3 million yen using the direct capitalisation and discounted cash flow analysis method. The sale consideration reflects a 17.3 per cent premium over the valuation. Built in March 2004, Rise Kojo Horibata houses 12 residential units and six car parking units.

The group does not expect the sale to have any material impact on its financial position. The property contributed about 0.2 per cent of Saizen Reit's unaudited annual revenue for the financial year ended June 30, 2012.

Manager of Saizen Reit, Japan Residential Assets Manager Ltd, says the divestment offers "an opportunity to realise Rise Kojo Horibata at a good price" and to "rebalance its property portfolio with a view to enhancing the overall quality and growth potential".

The proceeds may be used for Saizen Reit's working capital and/or property acquisitions. The manager is entitled to a 0.3 per cent divestment fee.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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