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Singapore-listed Thakral Corporation has invested in another commercial property in Japan for an undisclosed amount, revealed an SGX filing on Monday (3 Dec).
Known as the Kitahama Building, the 10-storey office tower sits on freehold land near Osaka’s central business district. In fact, it is near the financial district and the Osaka Securities Exchange. It is also a short walk from Kitahama station on the Sakaisuji Line.
Built in 1990, the property has a gross floor area of 3,415 sq m (36,758.75 sq ft) and currently has an occupancy rate of around 89 percent.
“The investment is part of our 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 the firm’s CEO Inderbethal Singh Thakral.
Property consultancy JLL expects office rents in Osaka to grow by 6.4 percent for the whole of 2018, and increase further by 7.5 percent next year.
“In line with our objective to boost returns from our capital resources, we will continue to look for more properties especially in the office sector in Osaka. We are optimistic that these investments will deliver positive income returns and yield capital growth over time to enhance shareholder value,” Singh said.
The company also disclosed that the investment is being financed by bank borrowings, internal resources and money from co-investors. The transaction is also being undertaken by its pooled investment vehicle, Thakral Japan Properties, wherein the firm controls a 50 percent stake.
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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