Bookmark & Share
Croesus Retail Trust revealed that it has entered into a purchase and sale agreement to acquire Torius Property, a completed retail property mall in Fukuoka, Japan for eight billion yen (S$95.2 million).
The acquisition will be funded through a combination of debt financing in the form of an issuance of new Japanese onshore 5-year specified bonds of JPY4,000 million (approximately S$47.6 million) and equity financing in the form of the proposed rights issue.
Expected to raise another S$69.7 million, the rights issue comprise 114,222,677 new units based on 22 rights units for every 100 existing units at an issue price of 61 cents per rights unit.
One of the biggest retail facilities in the Fukuoka Prefecture and its surrounding region, the property, which comprises 36 buildings, occupies a land area of 257,173 sq m and has a net lettable area of 77,032 sq m.
It has 145 tenants, with notable tenants including Costco (wholesale supermarket), Nafco (interior and furniture, DIY), United Cinema (cinema), Rakuichi Rakuza (amusement centre) and Daiso (100 yen shop).
Croesus Retail Asset Management, the trustee-manager of the Croesus, said the acquisition is consistent with its objective of delivering a competitive return on investment to unitholders through regular and growing distributions by pursuing accretive acquisition opportunities of retail assets.
Notably, Torius Property’s pro forma net property income (NPI) yield is 7.8 percent compared to the actual NPI yield of 5.3 percent for its existing portfolio for the financial year ended 30 June 2015.
The pro forma distribution yield of the enlarged portfolio will increase to around 9.41 percent compared to 9.4 percent currently.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.