Notice Concerning Acquisition of Investment Asset(Summit Store Yokohama Okano (Land interest))
02/22/2012 | 03:36am
Translation for Reference Purposes Only
For Immediate Release
February 22, 2012
6-8-7 Ginza, Chuo-ku, Tokyo Frontier Real Estate Investment
Corporation Hirohiko Kamei, Executive Director (Securities
Code: 8964)
Asset Management Company: Mitsui Fudosan Frontier REIT
Management Inc.
Hiroshi Tanaka
Chief Executive Officer and Representative Director
Inquiries: Mitsui Fudosan Frontier REIT Management Inc.
Tatsu Makino
Vice President, Finance Division and Director
Tel: +81-3-3289-0440
Notice Concerning Acquisition of Investment Asset
Frontier Real Estate Investment Corporation (the "Investment
Corporation") today announced its decision to acquire an
investment asset. Brief details are as follows.
1. Planned Acquisition Details
(1) Type of Acquired Asset: Real estate (Property ownership
in land with business-use leasehold) (2) Property Name:
Summit Store Yokohama Okano (Land interest)
(3) Acquisition Price: ¥5,700 million *
(4) Contract Date: February 24, 2012
(5) Acquisition Date: February 24, 2012 (Delivery and
clearance date) (6) Seller: Furukawa Electric Co., Ltd.
**
(7) Acquisition Financing: Self-financing and borrowings
(8) Payment Method: Single payment at the time of delivery
* Acquisition price does not include acquisition cost, real
property tax, city planning tax, etc.
** For details regarding seller's profile, please see Item 5
in the following section.
2. Rationale
The proposed acquisition of the Property is in line with the
Investment Corporation's "basic asset management policy" and
"investment stance" as provided in its Articles of
Incorporation. In its decision to acquire the Property,
Mitsui Fudosan Frontier REIT Management Inc., the Investment
Corporation's asset management company (the "Asset Management
Company") considered, inter alia, the following factors:
(1) Location
The Property is located in Nishi-ku, Yokohama-shi, Kanagawa.
It is situated in the central area of
Yokohama-shi, nine-minute walking distance from Hiranumabashi
station on the Sotetsu Main Line
Translation for Reference Purposes Only
and ten-minute walking distance from Nishi-Yokohama station
on the Sotetsu Main Line.
The Property enjoys a favorable market volume with dense
trade area population of 54,000 within a
1km radius and 159,000 within a 2km radius. There is an
increasing population trend in each trade area.
(2) Features of the Facility built on the Property
The Facility is a two-story, neighborhood trade area type
commercial facility that opened on November
30, 2011. The facility is occupied by 25 retail stores,
including clothing retailer Summit Colmo, DVD/CD rental and
sale chain store Geo and food supermarket Summit Store at its
core. A portion of second floor and the roof are used as
parking space with parking capacity for 356 cars. The bicycle
parking space has parking capacity for 310 bicycles.
3. Property Details
(1) Real Estate Details
|
Type of
Acquisition Asset
|
Real estate
(Property ownership in land with business-use
leasehold)
|
|
Address (as described in the real estate
register)
|
2-5-1 Okano, Nishi-ku, Yokohama-shi, Kanagawa
|
|
Land
|
Lot Area
|
14,394.09 m2 (registered)
|
|
Land
|
Use
|
Industrial district
|
|
Land
|
Plot Ratio
|
200%
|
|
Land
|
Building to
Land Ratio
|
60%
|
|
Land
|
Ownership
|
Proprietary ownership
|
|
Acquisition Price
|
¥5,700 million
|
|
Appraisal Value
|
¥5,700 million
|
|
Appraiser
|
Morii Appraisal & Investment Consulting, Inc.
|
|
Probable Maximum
Loss (PML)
|
- *
|
|
Collateral
|
None
|
|
Note
|
1. As a result of the previous owner's soil environment
assessment of the land, lead traces that exceed the
standards stipulated in the Soil Contamination
Countermeasures Law were confirmed from a part of the
property. Furthermore, the Investment Corporation has
received a report stating that there are no health
risks at the property under its current condition as
measures such as covering with asphalt have been taken.
2. Upon the acquisition of the property, the Investment
Corporation received a report stating that when soil is
removed, in case of building reconstruction in the
future,
relevant parties must comply with applicable laws and
regulations and appropriately process the soil as well
as a cost estimation for countermeasures against soil
contamination from an independent specialized agency.
The Investment Corporation has taken into account the
cost estimation in deciding on the acquisition price.
|
* PML is not calculated as it is an acquisition of land
interest only.
Translation for Reference Purposes Only
(2) Lease Details
|
Lessor
|
Frontier Real Estate Investment Corporation
|
|
Lessee
|
Summit, Inc.
|
|
Type of Contract
|
Commercial lease for business
|
|
Contract Term
|
21 years and 8 months (until November 31,
2031)
|
|
Annual Rent
|
¥292 million
|
|
Revisions of Rent
|
Every three year
|
|
Termination during the Contract Term
|
Not cancellable
|
|
Security Deposit
|
¥557 million *
|
|
Guarantee Deposit
|
None
|
|
Number of Tenants
|
1
|
|
Total Leasable Floor
Space
|
14,394.09 m2
|
|
Total Leased Floor
Space
|
14,394.09 m2
|
|
Occupation Rate
|
100% ((Total Leased Floor Space)/(Total Leasable Floor
Space))
|
* ¥300 million out of ¥557 million security deposit will be
written off, where ¥15 million will be written off at the end
of March annually, starting on March 31, 2012.
4. The Significance of the Acquisition
The acquisition of the Property is based on the Investment
Corporation's investment policy, the objective of which is to
ensure stable revenues and profit over the medium to long
term. The acquisition of the Property will expand the size of
the Investment Corporation and maintain and improve the
quality of the existing portfolio by diversifying and
decentralizing the portfolio.
5. Seller Profile
|
Company Name
|
Furukawa Electric Co., Ltd.
|
|
Address of Head Office
|
2-2-3 Marunouchi, Chiyoda-ku, Tokyo
|
|
Representative
|
Masao Yoshida, President
|
|
Share Capital
|
¥ 69,395 million
|
|
Major Shareholders
|
The Master Trust Bank of Japan, Ltd. (Trust account)
|
|
Principal Business
|
Telecommunications, manufacturing and sales of
non-ferrous metal products and other products
|
|
Relationship with the
Investment Corporation and/or the Asset Management
Company
|
Not applicable
|
6. Brokers Profile
|
Company Name
|
Mizuho Trust & Banking Co., Ltd.
|
|
Address of Head Office
|
1-2-1 Yaesu, Chuo-ku, Tokyo
|
|
Representative
|
Takashi Nonaka, President & CEO
|
|
Broker's Fee
|
|
|
|
|
|
| 05/25 - - Europe's economic slowdown has hit the engine-room of the euro zone, including Germany, gloomy new indicators... |
|
| 05/25 - DEARBORN, Mich., May 25, 2012 /PRNewswire/ -- -- Teens ages 15-18 and their parents play for first time ever on... |
|
| 05/25 - DoMark International Inc. announced today that management of its wholly-owned subsidiary, SolaWerks, has... |
|
| 05/24 - ARMONK, N.Y. - 24 May 2012: An IBM (NYSE: IBM) analysis of social media sentiment indicates that Americans are... |
|
|
