ASX/Media Release
18 May 2012
SALE OF TOKYO OFFICE ASSET - SHIBA DAIMON
Astro Japan Property Group (ASX: AJA) today announced the
sale of a Tokyo office asset from its
41 asset portfolio - Shiba Daimon for ¥855 million (A$10.9
million approx. at A$=¥78.5). Financial close of this
transaction has been completed.
After repaying the approximately ¥499.4 million of senior
debt allocated to this asset under the loan agreement, the
payment of sale costs and Japanese withholding tax, net
proceeds available to AJA are approximately ¥281 million
(approx. A$3.6 million). These funds will be used for capital
management purposes.
The sale price represents a 4.8% premium to the ¥816 million
purchase price (excluding acquisition costs) of the asset in
2005, and a 0.9% premium to the most recent book value of the
asset (as at 31 December 2011) of ¥847 million.
Mr Eric Lucas, Senior Advisor to AJA, said "We are pleased
once again to be able to demonstrate to our securityholders
our willingness and ability to actively manage our portfolio.
With both debt and asset markets having recovered materially
since last year's tragic earthquake, we hope to be able to
take advantage of further opportunities where appropriate to
sell assets and release capital across the portfolio".
"Since IPO in 2005, nearly $395 million (¥31 billion,
approx.) of AJA assets have been sold at an aggregate 8%
premium to book value and 18% premium to acquisition cost. It
is noteworthy that almost all these sales - which total about
30% of AJA's current portfolio by value - have taken place
since the onset of the global financial crisis in 2007".
The Appendix sets out a table summarising all asset disposals
since IPO in relation to book value and acquisition cost.
The property interest sold was the Shiba Daimon building,
which is an 18 year old office building located in the Shiba
Daimon area in Minato-ku, Tokyo. The property is located on a
major arterial road and close to the Hamamatsu-cho area.
AJA's interest in the building was held through the special
purpose company, JPT Co., Ltd, which owned condominium
interests of approximately
32% of the overall Shiba Daimon building.
AJA's interest in the property was acquired in January 2005
for ¥816 million at an initial yield of
4.1% with 63.9% occupancy. The property represents slightly
less than 1% by book value of AJA's
total portfolio.
AJA's interest was sold to a private Japanese asset
management company.
Eric Lucas John Pettigrew
Senior Advisor Chief Financial Officer
Phone: +61 2 8987 3900 (Australia) Phone: +61 2 8987 3902
+81 3 3238 1671 (Japan)
About Astro Japan Property Group (AJA)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 40 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 .
2
APPENDIX ASSET SALES SINCE IPODisposal Date | Property | Sale Price (¥bn) | Book Value (¥bn) | Acquisition Cost (¥bn) | Premium/ discount to Book Value | Premium/ discount to Acquisition Cost |
Jun-07 | Kuroshio Shijo | 2.0 | 2.0 | 2.4 | 0% | -17% |
Sep-07 | Showa Yakubo | 0.9 | 0.7 | 0.7 | 25% | 30% |
Feb-08 | Sun | 6.2 | 3.7 | 3.3 | 70% | 90% |
Feb-08 | Sapporo Nishioka | 5.3 | 3.9 | 4.0 | 36% | 32% |
May-09 | Shinjuku Sanei | 11.0 | 13.4 | 8.3 | -18% | 33% |
Sep-10 | Kokusai Nihombashi | 3.8 | 3.5 | 5.9 | 9% | -36% |
Sep-10 | Prime Tsukiji | 0.9 | 0.8 | 0.9 | 6% | -8% |
May-12 | Shiba Daimon | 0.9 | 0.8 | 0.8 | 1% | 5% |
Total disposals (¥bn) | 31.0 | 28.8 | 26.3 | 8% | 18% | |
Total disposals (A$m)¹ | 394.9 | 366.9 | 335.0 | 8% | 18% | |
¹ A$=¥78.5 |
3
distributed by |