SINGAPORE (July 1): Thakral Corporation has acquired another commercial property in Osaka, Japan – the Nikke Yotsubashi building.
The latest investment increases Thakral’s portfolio of real estate investments in Japan to 11 properties. The properties cover three hotels and eight commercial/office buildings in Osaka, the second biggest metropolis.
The acquisition was made by Thakral’s direct subsidiary in Singapore, TJP Pte Ltd (TJPP). TJPP, formed in 2018, is a pooled investment vehicle with equity interests from the group and co-investors for investing in properties in Japan.
The Nikke Yotsubashi Building is a 10-storey office building centrally located on Yotsubashi Suji, a minute’s walk from Yotsubashi Subway station. Its broad street frontage along Yotsubashi Suji makes it a valuable site.
The building has gross floor area (GFA) of 7,524 sqm and a net rentable area (NRA) of 5,105 sqm. It also has a current occupation rate of 95%.
A strong leasing market has also underpinned the robust demand for property as rents are expected to rise by 7.5% this year.
The latest acquisition is in the ordinary course of the group’s business and is part of its overall strategy to broaden its asset and earnings base in Japan to capitalise on the country’s strong economic fundamentals and tourism boom.
Thakral’s Chief Executive Officer Inderbethal Singh Thakral says: “Japan’s economy is enjoying a strong flow of both visitors and investments because of its improving economy and relatively stable currency. It is seeing steady financial and business growth. Osaka (together with Tokyo) has been ranked among the top 10 most liveable cities in the world (according to the Economist Intelligence Unit’s Global Liveability Index).”
“These global reviews and the revival of Japan as a key business and leisure destination should assist in improving Japanese real estate values. We are therefore strengthening our presence to take benefit of the upside of such investments to enhance returns to our shareholders,” he adds.
The price of the acquisition was not disclosed by Thakral.
