Office Buildings and Mall Switches Hand

CapitaLand acquires three office buildings and a mall in Tokyo for S$620.1 mil

SINGAPORE (Feb 17): CapitaLand has agreed to acquire a portfolio of four income-producing office and retail properties in Japan’s Greater Tokyo Area, at ¥49.7 billion (S$620.1 million or RM1.95 billion).

CapitaLand says the acquisition will strengthen the group’s foothold in Greater Tokyo and increase the its total asset size in Japan to about S$2.5 billion (RM7.86 billion).

The portfolio comprises two office buildings in Yokohama — Yokohama Blue Avenue and Sun Hamada; one office building in Tokyo – Kokugikan Front; and one shopping mall in Saitama — Seiyu & Sundrug.

Including transaction costs, the total investment for the portfolio is about ¥51.0 billion.

The sale and purchase agreements were signed its by CapitaLand’s wholly owned shopping mall business CapitaLand Mall Asia.

Jason Leow, CEO of CapitaLand Mall Asia and Co-ordinating CEO, Asia of CapitaLand, said, “This latest acquisition will deepen the group’s presence in Greater Tokyo through assets with stable yields and recurring cash flow. Immediately accretive with upside potential, this acquisition will contribute a net operating income of about S$25 million per year…”

The acquisition will be financed by a combination of internal funds and borrowings, and is expected to be completed in the first quarter of this year.

CapitaLand owns and manages four shopping malls in Japan – namely Olinas Mall, Vivit Minami-Funabashi and La Park Mizue in Tokyo; as well as Coop Kobe Nishinomiya-Higashi in Kobe. Through its wholly owned serviced residence arm, The Ascott, CapitaLand owns and manages 46 properties with more than 3,500 apartment units in Japan. The group’s Japan portfolio also includes a 20% stake in an office building — the Shinjuku Front Tower.

Shares of CapitaLand closed 4 Singapore cents lower at S$3.45 on Thursday. —

Source : The Edge Markets Singapore

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