SINGAPORE (Dec 30): Mainboard-listed Thakral Corporation is acquiring Umeda Pacific Building, an 11-storey office building in Osaka, to expand its property portfolio in Japan.
The acquisition was made through the group’s recently incorporated subsidiary, Thakral Umeda Properties.
According to the group, Thakral Umeda Properties is a pooled investment joint venture set up for further investors in Japan.
In a regulatory filing on Monday, Thakral says that the property spans 861 sqm of freehold land, and has a gross floor area (GFA) of 9,179 sqm and net rentable area of 6,359 sqm. The building is also fully-tenanted.
Although the purchase consideration was not disclosed by the group, Thakral highlighted that the acquisition was funded by a combination of bank borrowings, its internal resources as well as co-investors.
When contacted by The Edge Singapore, Thakral's PR agency declined to comment on details of the purchase price and valuation of the property.
Group CEO and executive director Inderbethal Singh says that the acquisition is in line with Thakral’s overall strategy to diversify its assets and earnings base in Japan, which will allow it to capitalise on the country’s strong economic fundamentals to enhance shareholders’ value.
“Osaka’s real estate market is poised for robust growth as supply of commercial space will remain tight until 2022, when new buildings such as Umeda Twin Towers South become available,” notes Singh.
Singh notes that the all-grade vacancy rate of properties like the Umeda Pacific Building has also fallen to a record low, with many tenants looking to secure space regardless of location or grade.
“With the rise in demand, we expect to benefit from higher rental yields for our properties in Osaka. The Umeda Pacific Building with its prime location would offer an excellent land bank with recurring income for future redevelopment potential,” he adds.
Shares in Thakral closed flat at 49.5 cents on Friday.