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Starhill Global Reit (SGReit) has divested a three-storey retail building in Tokyo, Japan, for 410.2 million yen (S$5.1 million), at a 22.4 percent premium to its latest valuation.
In an SGX filing, SGReit’s manager revealed that the transacted price works out to a 2.5 percent yield.
With a net lettable area of 2,249 sq ft, Harajuku Secondo was last valued at 335 million yen (S$4.1 million) as at 31 March, and accounts for 6.6 percent of the Japanese portfolio and 0.1 percent of the SGReit’s portfolio by asset value.
Following the transaction, the trust’s Japan portfolio will be reduced to three properties while its exposure to Japan by asset value will also be reduced by around 0.1 percent to 1.9 percent of SGReit’s asset value.
Its gearing is also expected to drop to 35.2 percent from 35.3 percent “assuming that the net sales proceeds are substantially used to repay the yen loans”.
“The divestment is part of our strategy to streamline our portfolio and focus on our strengths. Since 2013, we have divested S$57 million of Japanese properties but redeployed and reinvested A$336 million into new prime properties in Perth and Adelaide in Australia,” said Ho Sing, chief executive officer of the trust’s manager.
“Going forward, we will continue to refine our portfolio, seek out opportunities in our core markets and rejuvenate our assets through enhancement initiatives.”
This article was edited by Denise Djong.
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