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Singapore-listed Hanwell Holdings agreed to purchase a five-storey commercial building in Osaka, Japan for 575 million yen or about S$6.94 million, revealed an SGX filing on Friday (29 September 2017).
Its wholly-owned subsidiary Nagomi Co., Ltd carried out the acquisition of the property that comes with an underground basement. It has a land area of 93.56 sqm and a total floor area of 427.78 sqm.
“The property is strategically situated in the entertainment area of Dotonbori which is Osaka’s most famous tourist destination that offers ample lifestyle, food and beverage amenities,” said the company in a statement.
“The acquisition is in line with the company’s business strategy of redeploying capital into potentially higher return real estate opportunities. In particular, the property would be utilised by the company as a stepping stone to expand its food business in Japan.”
Hanwell also revealed that the purchase price took into account appraiser Kinki Kantei Jisho Co., Ltd’s property valuation of 617 million yen (S$7.45 million) as of 1 August 2017.
The transaction will be funded by internal resources, payable upon completion of certain conditions, and the acquisition is not expected to have any effect on the firm’s earnings per share and net tangible assets for the current fiscal year ending 31 December 2017, it added.
This article was edited by Keshia Faculin.
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