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Wednesday, May 11, 2011

Saizen divests Studio City from the YK Shingen portfolio

Saizen divests Studio City from the YK Shingen portfolio:
Key Points
  • YK Shingen has, on 10 May 2011, entered into a conditional sale and purchase agreement for the divestment of Studio City (“SC”) to an independent private investor (the “SC Buyer”) for a cash consideration of JPY 175,000,000 (S$2.7 million) (the “SC Sale Price”).
  • SC, located in Sapporo, was built in March 1985 and comprises 51 residential units, 1 commercial unit and 12 car parking units. It contributed about 0.6% (or approximately JPY 26.8 million) of Saizen REIT’s annual revenue in the financial year ended 30 June 2010 (“FY2010”).
  • Given the small size of SC 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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