Saizen Reit divests Villa Kaigancho - 8 OCT 2010

Saizen Reit divests Villa Kaigancho. See press release.

Key Points

• The manager Saizen REIT wishes to announce the divestment of Villa Kaigancho (the “Current Divestment”) from the property portfolio of YK Shintoku.
• YK Shintoku has, on 8 October 2010, entered into a sale and purchase agreement for the divestment of Villa Kaigancho (“VK”) to an independent private investor (the “VK Buyer”) for a cash consideration of JPY 250,710,000 (S$3.9 million1) (the “VK Sale Price”). The divestment of VK was completed on the same day upon the payment of the full amount of the VK Sale Price by the VK Buyer.
• VK, located in Hakodate, was built in November 1990 and comprises 50 residential units, 1 commercial unit and 24 car parking units. It contributed about 1.0% (or approximately JPY 41.4 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010.
• Given the small size of VK relative to the entire portfolio of Saizen REIT, the Current Divestment is not expected to have any material impact on the financial position of Saizen REIT.