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Tuesday, March 29, 2011

Saizen Reit Divests of Club House Kikugaoka

Saizen Reit Divests of Club House Kikugaoka:
Key Points
  • YK Shingen has, on 29 March 2011, entered into a sale and purchase agreement for the divestment of Club House Kikugaoka (“CHK”) to an independent private investor (the “CHK Buyer”) for a cash consideration of JPY 230,000,000 (S$3.6 million1) (the “CHK Sale Price”). 
  • The divestment of CHK was completed on the same day upon the payment of the full amount of the CHK Sale Price by the CHK Buyer.
  • CHK, located in Kitakyushu, was built in March 1991 and comprises 25 residential units and 26 car parking units. It contributed about 0.6% (or approximately JPY 23.3 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
  • Given the small size of CHK 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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