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Wednesday, November 10, 2010

Saizen Reit divests of Jewel Town Suehiro - 10 NOV 2010

Divestment of Jewel Town Suehiro from the property portfolio of YK Shintoku.
See press release.

Key Points
  • YK Shintoku has, on 9 November 2010, entered into a sale and purchase agreement for the divestment of Jewel Town Suehiro (“JT”) to an independent private investor (the “JT Buyer”) for a cash consideration of JPY 146,042,400 (S$2.3 million 1 ) (the “JT Sale Price”). 
  • The divestment of JT was completed on the same day upon the payment of the full amount of the JT Sale Price by the JT Buyer.
  • JT, located in Hakodate, was built in August 1991 and comprises 30 residential units and 8 car parking units. It contributed about 0.5% (or approximately JPY 19.1 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
  • Given the small size of JT 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.
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