ADVANCE RESIDENCE INVESTMENT CORPORATION September 12, 2023
For Immediate Release
Advance Residence Investment Corporation
Securities Code: 3269
1-105Kanda-Jinbocho,Chiyoda-ku, Tokyo
Wataru Higuchi, Executive Director
Asset Management Company:
ITOCHU REIT Management Co., Ltd.
1-105Kanda-Jinbocho,Chiyoda-ku, Tokyo
Junichi Shoji, Representative Director, President & CEO
Inquiries:
Isao Kudo, Executive Officer
TEL. +81-3-6821-5483
Notice Concerning Acquisition of Investment Asset
(RESIDIA Shirokane-Takanawa II and 10 other properties)
ITOCHU REIT Management Co., Ltd. (IRM), the asset management company to which Advance Residence Investment Corporation (ADR) entrusts the management of its assets, announced its decision today to have ADR acquire an asset located in Japan (hereafter, the "Acquisition") as detailed below as part of ADR`s growth strategy.
1. Details of the Acquisition
IRM decided on the following acquisition pursuant to the target and policy of asset management as stipulated in the Articles of Incorporation of ADR, for steady increase in asset size and diversification and enhancement of the portfolio.
Property | Name of the Asset-To-Be- | Proposed | Building | NOI Yield | Yield after | |
No. | Acquisition | Depreciation | ||||
Number | Acquired | Age(Note2) | (Note3) | |||
(Note4) | ||||||
Price(Note1) | ||||||
(1) | T-182 | RESIDIA Shirokane- | 1,009 million yen | 8.1 years | 4.2% | 3.6% |
Takanawa II | ||||||
(2) | T-183 | RESIDIA Meguro IV | 1,853 million yen | 7.7 years | 4.2% | 3.7% |
(3) | T-184 | RESIDIA Bunkyo | 1,772 million yen | 7.0 years | 4.2% | 3.6% |
Koishikawa II | ||||||
(4) | T-185 | RESIDIA Shinagawa | 3,315 million yen | 5.5 years | 4.2% | 3.5% |
Seaside | ||||||
(5) | T-186. | Share Place | 694 million yen | 2.0 years | 4.7% | 3.9% |
Shimo-kitazawa | ||||||
(6) | T-187 | RESIDIA Ochanomizu III | 1,279 million yen | 6.8 years | 4.2% | 3.6% |
(7) | T-188 | RESIDIA Sangenjaya III | 2,016 million yen | 6.4 years | 4.2% | 3.6% |
(8) | T-189 | RESIDIA Sendagi | 2,912 million yen | 5.9 years | 4.2% | 3.5% |
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Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
(9) | S-036 | Tokyo Student-House | 5,835 million yen | 6.6 years | 4.5% | 3.6% |
Musashi-Kosugi | ||||||
(10) | R-087 | RESIDIA Kyudai- | 1,048 million yen | 3.5 years | 5.1% | 3.8% |
Gakkentoshi | ||||||
(11) | R-088 | RESIDIA Kyusandaimae | 806 million yen | 1.6 years | 5.2% | 3.6% |
Total/Average(Note5) | 22,539 million | 6.1 years | 4.4% | 3.6% | ||
yen | ||||||
（Note1） "Proposed Acquisition Price" refers to the purchase price written in the beneficiary transfer agreements for the Asset-To-Be-Acquired and does not include various expenses needed for the acquisition such as taxes and public dues.
（Note2） "Building Age" is the age of the building as of the date of this document and is rounded at the second decimal point.
（Note3） "NOI Yield" is calculated as follows: annualized NOI written in the appraisal document at the time of the acquisition of the asset-to-be acquired and calculated using direct capitalization method / proposed acquisition price x 100. The calculated yield is rounded at the second decimal point.
（Note4） "Yield after Deprecation" is calculated as follows: (annualized NOI written in the appraisal document at the time of the acquisition of the asset-to-be-acquired and calculated using direct capitalization method - annual depreciation cost) / proposed acquisition price x 100. The calculated yield is rounded at the second decimal point. As is the case with the existing portfolio of ADR, the depreciation cost of the assets-to-be-acquired is calculated by ADR, using the straight-line method under certain assumptions, and estimated as below; T-182 RESIDIA Shirokane-Takanawa II: 5,808 thousand yen per annum, T-183 RESIDIA Meguro IV: 8,641 thousand yen per annum, T-184 RESIDIA Bunkyo Koishikawa II: 9,956 thousand yen per annum, T-185 RESIDIA Shinagawa Seaside: 21,865 thousand yen per annum, T-186 Share Place Shimo-kitazawa: 5,497 thousand yen per annum, T-187 RESIDIA Ochanomizu III: 8,255 thousand yen per annum, T- 188 RESIDIA Sangenjaya III: 13,418 thousand yen per annum, T-189 RESIDIA Sendagi: 20,194 thousand yen per annum, S-036 Tokyo Student-HouseMusashi-Kosugi: 50,452 thousand yen per annum, R-087 RESIDIA Kyudai-Gakkentoshi: 13,955 thousand yen per annum, and R-088 RESIDIA Kyusandaimae: 12,793 thousand yen per annum.
（Note5） Building Age, NOI Yield, and Yield after Depreciation are weighted-average figures calculated by the Proposed Acquisition Price and rounded to the second decimal point.
In the real estate trading market, the supply of new, high-quality rental housing in good locations is limited, and the trading prices of properties in central metropolitan areas, where stable rental demand can be expected, continue to remain high, creating a difficult acquisition environment.
In this environment, ADR has decided to acquire properties located in Tokyo 23 Wards and Kawasaki City developed by IRM's sponsors, ITOCHU Corporation and ITOCHU Property Development, Ltd. as well as a recently built property located in Fukuoka City from a third party. The average Building Age of the Asset-To-Be-Acquired is 6.1 years, which is much lower than the average Building Age of the entire portfolio of 16.7 years (Note6) as of the end of July 2023.
（Note6） The Average Building Age for the entire portfolio is the weighted average Building Age of the properties in the portfolio, weighted by Acquisition Price and rounded to the second decimal place.
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Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
ADR has evaluated the characteristics of each property at the time of this acquisition as follows.
No. | Property Name | Property Characteristics |
(1) | RESIDIA Shirokane- | Located an 8-minute walk from Shirokane-Takanawa Station on the |
Takanawa II | Tokyo Metro Namboku Line and Toei Mita Line, the property has easy | |
access to the Marunouchi and Otemachi areas, which are major business | ||
districts, and is therefore expected to enjoy broad demand from singles | ||
and DINKs who work in these areas. | ||
(2) | RESIDIA Meguro IV | Located a 9-minute walk from Meguro Station on the JR Yamanote Line |
and other lines, the property has easy access to terminal stations such as | ||
Shinjuku and Shibuya, and is expected to attract a wide range of demand | ||
from singles and families who work in the area. | ||
(3) | RESIDIA Bunkyo | Located a 5-minute walk from Korakuen Station on the Tokyo Metro |
Koishikawa II | Marunouchi Line and Namboku Line, and a 5-minute walk from Kasuga | |
Station on the Toei Mita Line, both stations provide easy access to the | ||
Marunouchi and Otemachi areas, which are major business districts, and | ||
therefore, a wide range of demand is expected, including single working | ||
people, DINKs, and families working in these areas. Therefore, a wide | ||
range of demand is expected, including singles, DINKs, and families | ||
working in the area. | ||
(4) | RESIDIA Shinagawa Seaside | The property is a 4-minute walk from Aomono-Yokocho Station on the |
Keihin Kyuko Main Line, a stop on the limited express and express train | ||
lines, and as Shinagawa Station, a terminal station, is easily accessible | ||
from the station, solid demand from single persons working in the area | ||
is expected. In addition, there is a convenience store on the first floor of | ||
the property, making it convenient for daily life. | ||
(5) | Share Place Shimo-Kitazawa | Located a 4-minute walk from Ikenoue Station on the Keio Inokashira |
Line and a 5-minute walk from Shimokitazawa Station on the Odakyu | ||
and Keio Inokashira Lines, this dormitory for working people is also | ||
equipped with a work lounge in the common area of the property, so it | ||
can expect diverse demand from single people working at Shibuya and | ||
Shinjuku stations as well as freelance IT engineers. The property is | ||
located in the Shimokitazawa Station area. The area around | ||
Shimokitazawa Station is also conveniently located with supermarkets, | ||
convenience stores, drugstores, etc. | ||
(6) | RESIDIA Ochanomizu III | Located a 6-minute walk from Suehirocho Station on the Tokyo Metro |
Ginza Line and a 7-minute walk from Akihabara Station on the JR | ||
Yamanote Line and Ochanomizu Station on the Tokyo Metro | ||
Marunouchi Line, the station provides easy access to the Marunouchi | ||
and Otemachi areas and Shinbashi Station, which are major business | ||
areas, and is therefore expected to attract a wide range of single persons | ||
and DINKs working in these areas. Therefore, the property is expected | ||
to attract a wide range of demand from singles and DINKS who work in | ||
the area. | ||
(7) | RESIDIA Sangenjaya III | Located a 6-minute walk from Sangenjaya Station on the Tokyu |
Denentoshi Line, the property has easy access to Shibuya Station, a | ||
terminal station, and can expect demand from singles, DINKs, and | ||
families who work in the area. In addition, the property has a | ||
convenience store on the first floor, making it convenient for daily life. | ||
(8) | RESIDIA Sendagi | Located a 3-minute walk from Sendagi Station on the Tokyo Metro |
Chiyoda Line, the property has easy access to the Marunouchi and | ||
Otemachi areas, which are major business areas, and can expect demand | ||
from singles, DINKs, and families who work in the area. In addition, the | ||
property has a supermarket on the first floor, making it convenient for | ||
daily life. | ||
3 |
Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
(9) | Tokyo Student-House | Located a 14-minute walk from Musashi Kosugi Station on the JR |
Musashi-Kosugi | Yokosuka Line, this student dormitory with meals is expected to be in | |
demand by students commuting to Keio University (Hiyoshi Campus), | ||
Aoyama Gakuin University (Aoyama Campus), Temple University and | ||
other schools. | ||
(10) | RESIDIA Kyudai- | The dormitory is a 4-minute walk from Kyudai-Gakkentoshi Station on |
Gakkentoshi | the JR Chikuhi Line and about 15 minutes by bus to Kyushu University | |
Ito Campus, and as it is a student dormitory with meals, demand from | ||
students commuting to Kyushu University can be expected. | ||
(11) | RESIDIA Kyusandaimae | This student dormitory with meals is located a 16-minute walk from |
Kashii Station on the JR Kagoshima Main Line, an 18-minute walk from | ||
Kyusandaimae Station on the same line, a 10-minute walk from the main | ||
gate of Kyushu Sangyo University, and a 15-minute walk from the main | ||
gate of Fukuoka Women's University, so demand from students | ||
attending Kyushu Sangyo University and Fukuoka Women's University | ||
is expected. | ||
(1) T-182 RESIDIA Shirokane-Takanawa II
4
Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
(2) T-183 RESIDIA Meguro IV
(3) T-184 RESIDIA Bunkyo Koishikawa II
5
Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
(4) T-185 RESIDIA Shinagawa Seaside
(5) T-186 Share Place Shimo-kitazawa
6
Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
(6) T-187 RESIDIA Ochanomizu III
(7) T-188 RESIDIA Sangenjaya III
7
Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
(8) T-189 RESIDIA Sendagi
(9) S-036 Tokyo Student-HouseMusashi-Kosugi
8
Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
(10) R-087 RESIDIA Kyudai-Gakkentoshi
(11) R-088 RESIDIA Kyusandaimae
9
Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
2. Overview of acquisition
Property No. | T-182 | T-183 | T-187 | T-188 | T-189 | ||||||||
Name of Asset-To- | RESIDIA | RESIDIA | RESIDIA | RESIDIA | RESIDIA | ||||||||
Shirokane- | Sendagi | ||||||||||||
Be-Acquired | Meguro IV | Ochanomizu III | Sangenjaya III | ||||||||||
Takanawa II | |||||||||||||
Beneficiary | Beneficiary | Beneficiary | Beneficiary | Beneficiary | |||||||||
Type of Ownership | Interests in | Interests in | Interests in | ||||||||||
Interests in Trust | Interests in Trust | ||||||||||||
Trust | Trust | Trust | |||||||||||
Acquisition Price | 1,009 | 1,853 | 1,279 | 2,016 | 2,912 | ||||||||
(Price / Appraisal | million yen | million yen | million yen | million yen | million yen | ||||||||
ratio) | (88.5%) | (88.7%) | (87.6%) | (87.7%) | (89.1%) | ||||||||
Appraisal Value(Note1) | 1,140 | 2,090 | 1,460 | 2,300 | 3,270 | ||||||||
million yen | million yen | million yen | million yen | million yen | |||||||||
Seller | ITOCHU Corporation | ||||||||||||
Scheduled Contract | September 12, 2023 | ||||||||||||
Date | |||||||||||||
Scheduled | September 29, 2023 or a date to be | April 18, 2024 or a date to be separately agreed upon | |||||||||||
separately agreed upon with the | |||||||||||||
Acquisition Date | with the Counterparty | ||||||||||||
Counterparty | |||||||||||||
Proceeds from | |||||||||||||
Acquisition | Proceeds from issuance of new | Proceeds from issuance of new | the issuance of | ||||||||||
new investment | |||||||||||||
investment units and cash on hand | investment units and cash on hand | ||||||||||||
Financing | units and | ||||||||||||
(planned) | (planned) | ||||||||||||
Loans(Note2) | |||||||||||||
(planned) | |||||||||||||
Payment Method | Full payment upon delivery | ||||||||||||
Collateral | None | ||||||||||||
Property No. | T-184 | T-185 | T-186. | S-036 | |||||||||
Name of Asset-To- | RESIDIA Bunkyo | RESIDIA Shinagawa | Share Place | Musashi Kosugi, | |||||||||
Student House, | |||||||||||||
Be-Acquired | Koishikawa II | Seaside | Shimokitazawa | ||||||||||
Tokyo | |||||||||||||
Type of Ownership | Beneficiary Interests | Beneficiary Interests | Beneficiary Interests | Beneficiary Interests | |||||||||
in Trust | in Trust | in Trust | in Trust | ||||||||||
Acquisition Price | 1,772 million yen | 3,315 million yen | 694 million yen | 5,835 million yen | |||||||||
(Price / Appraisal | |||||||||||||
(88.6%) | (90.6%) | (89.0%) | (92.3%) | ||||||||||
ratio) | |||||||||||||
Appraisal Value(Note1) | 2,000 million yen | 3,660 million yen | 780 million yen | 6,320 million yen | |||||||||
Seller | ITOCHU Property Development, Ltd.. | ||||||||||||
Scheduled Contract | September 12, 2023 | ||||||||||||
Date | |||||||||||||
Scheduled | April 18, 2024 or a | ||||||||||||
September 29, 2023 or a date to be separately agreed upon with the | date to be separately | ||||||||||||
Acquisition Date | Counterparty | agreed upon with the | |||||||||||
Counterparty | |||||||||||||
Proceeds from | Proceeds from the | Proceeds from | Proceeds from the | ||||||||||
Acquisition | issuance of new | issuance of new | |||||||||||
issuance of new | issuance of new | ||||||||||||
investment units and | investment units and | ||||||||||||
Financing | investment units and | investment units and | |||||||||||
cash on hand | cash on hand | ||||||||||||
Loans(Note2) (planned) | Loans(Note2) (planned) | ||||||||||||
(planned) | (planned) | ||||||||||||
Payment Method | Full payment upon delivery | ||||||||||||
Collateral | None | ||||||||||||
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Note: This press release was prepared as a public announcement regarding the acquisition of assets by ADR and was not prepared with the aim of soliciting investments. ADR asks that investors make investment decisions only after they have made sure to refer to the prospectus for the issue of new investment units and secondary offering of investment units as well as amendments thereto (if any) prepared by ADR, and that they make investment decisions at their own discretion and responsibility.
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Advance Residence Investment Corporation published this content on 18 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2024 06:36:01 UTC.
