ASTRO JAPAN PROPERTY GROUP ASX/Media Release
4 August 2015
THIRD ADDITIONAL ACQUISITION INCREASING AJA'S INTEREST IN MUSASHINO TOWERS
Astro Japan Property Group (ASX: AJA) today announced that it has further increased its interest in the Musashino Towers asset from approximately 52% to 64% with an additional equity investment of approximately ¥281 million (A$3.1 million approx., at A$1=¥91), funded from available cash.
AJA's initial 21% interest in the asset was acquired on 29 March 2013, with an additional approximately 8% interest acquired on 29 May 2015 and an additional approximately 23% acquired on 30 June 2015.
As previously announced, the asset comprises the lower floor retail and commercial sections of two high-rise residential towers - Skygate Tower and Skycross Tower - located close to Mitaka station in western Tokyo.
The asset has a gross value of just over ¥5.33 billion (A$58.6 million approx.) based on the most recent valuation as at 31 December 2014, and this acquisition of a further interest was made based on a price representing a small discount to that valuation.
The asset, completed in 2010, is held by a special purpose, property owning Japanese company into which AJA and co-investors contributed equity by a tokumei kumiai (TK) or Japanese partnership. The additional investment, a purchase from one of the group of TK co-investors, was arranged by AJA's Japan Asset Manager, Spring Investment Co., Ltd (Spring). The Spring group continues to hold its investment in the TK, along with one other investor and AJA.
Mr Allan McDonald, Chairman of AJA, commented, "We are very pleased to have been able to again take the opportunity to use some of our cash to further increase AJA's interest in this asset. Following the various capital management initiatives taken and announced over the past 6 months, the balance of available cash after this transaction and allowing for the distribution payable at the end of this month will be approximately $24 million, mostly held in Yen. The Board will continue to consider capital initiatives, including additional property investment, to deploy this remaining balance."
Key property information is set out in the Appendix to this announcement.
Astro Japan Property Group is a listed property group which invests in the Japan real estate market. It currently holds interests in a portfolio comprising 30 retail, office and residential properties. Asset management services in Japan are generally undertaken by Spring Investment Co., Ltd.
AJA is a stapled entity comprising Astro Japan Property Trust (ARSN 112 799 854) and Astro Japan Property Group Limited (ABN 25 135 381 663). For further information please visit our website: www.astrojapanproperty.com
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APPENDIX Details of the PropertyProperty | Strata title of the following: Levels 1 to 5 plus basements 1 and 2 in Skygate Tower (28 floors) Level 1 in Skycross Tower (31 floors) |
Location | Mitaka in western Tokyo - in close proximity (200m, approx.) to Mitaka station on the JR Chuo line, connecting Tokyo via Shinjuku and Tachikawa. Mitaka Station is located about 20km west of Tokyo Station. |
Total lettable area | 9,524 sqm |
Leasing/tenants | 100% occupancy, and all major tenants are well known, stock exchange listed companies or their subsidiaries. Leases are predominantly fixed term, fixed rent leases with more than 10 years remaining, except for the Lawson lease expiring in 2020. Tenant name, business type and area occupied: Megalos Co., Ltd., Sports Club/Clinics, 4,154 sqm Keio Corporation, Supermarket, 2,151 sqm Lawson, Inc., Convenience Store, 202 sqm NTT Le-Parc Corporation, Car Park, 3,017 sqm |
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