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In a bid to expand its Japanese portfolio, Thakral Corporation has acquired three properties in Osaka, Japan which are valued at JPY5.46 billion (S$66 million).
It invested in Hotel WBF (White Bear Family) Namba Motomachi and office building Utsubo East Building via a new pooled investment structure.
Thakral also acquired Legal Itachibori Building (pictured) through its current pooled investment vehicle, which has a different shareholding pattern from the new pooled structure.
The Hotel WBF Namba Motomachi comprises 111 rooms comprising 84 twin, 26 double and one larger accessible twin room. It is acquired on a fixed lease back for five years to the current operator, White Bear Family.
Utsubo East Building is a freehold office building within Osaka’s central business district (CBD), which has a gross floor area (GFA) of around 5,000 sq m and an occupancy rate of 98 percent.
Legal Itachibori Building is also an office building in Osaka’s CBD with a GFA of around 5,600 sq m and an occupancy rate of 75 percent.
Funded by bank borrowings, internal resources and co-investors, the acquisitions are part of the company’s “broader strategy to ride on the growing tenant demand in Osaka as the region has the highest occupancy rate owing to strong demand from visitors as well as a limited volume of office supply,” said Thakral CEO Inderbethal Singh Thakral.
He revealed that the company will continue to look for more properties, particularly in the office and possibly within Osaka’s retail sector.
“We are optimistic that the investments will deliver positive returns and yield capital growth over time to enhance shareholder value,” he added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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