NTT UD REIT INVESTMENT CORPORATION For Immediate Release | October 23, 2023 |
REIT Issuer | |
NTT UD REIT Investment Corporation | |
1-5-1 Otemachi, Chiyoda Ward, Tokyo | |
Executive Director | Takeshi Oodera |
(Securities Code 8956) | |
Asset Management Company | |
NTT Urban Development Asset Management Corporation | |
President & CEO | Yutaka Torigoe |
[Contact] |
Director & CFO, Finance | Takeshi Iwata |
Department | |
TEL: +81-3-6262-9400 | |
Notice Concerning Property Acquisition
NTT UD REIT Investment Corporation ("NUD") announces that NTT Urban Development Asset Management Corporation ("UDAM"), the asset management company of NUD, today decided on the acquisition (hereinafter referred to as the "Acquisition") of two office buildings as described below (hereinafter referred to individually and collectively as the "Property" and the "Properties to Be Acquired").
1. Overview of the Acquisition
Property Name | Urbannet Shijo Karasuma Building | Urbannet Fushimi Building |
Type of Asset to Be | Beneficiary interest in a real estate trust (Note 1) | |
Acquired | ||
Planned Acquisition Price | 9,700 million yen (Note 2) | 8,750 million yen (Note 2) |
Seller | NTT Urban Development Corporation | |
Intermediary | None | |
Acquisition Decision Date | October 23, 2023 | |
Conclusion Date | October 23, 2023 | |
Planned Delivery Date | November 8, 2023 | |
Payment Method | Lump-sum payment upon delivery | |
The proceeds from the issuance of new investment units resolved at the | ||
Financing for Acquisition | board of directors' meeting of NUD held today (Note 3), borrowings (Note 4), | |
and cash on hand will be used for the acquisition. |
(Note 1) For details of the trust property, please refer to "3. Details of the Properties to Be Acquired" below.
(Note 2) The acquisition price represents the transaction price before taxes, not including various expenses required for the acquisition of the Property.
(Note 3) It refers to the proceeds from the primary offering of the new investment units to be issued. For details, please refer to "Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units" separately announced today.
(Note 4) We will announce the details of the borrowing when it is decided.
2. Reason for the Acquisition
Urbannet Shijo Karasuma Building and Urbannet Fushimi Building, which are the Properties to Be Acquired, are office buildings developed by the sponsor NTT Urban Development Corporation ("NTT Urban Development") and located in the Shijo-Karasuma area and Fushimi area, respectively, the main business areas of Kyoto and Nagoya.
Urbannet Shijo Karasuma Building is a highly competitive office/commercial complex that combines high visibility with its location on the corner of the Shijo-Karasuma Intersection, which is the center of the area, and an excellent size of office standard floor area of approximately 480 tsubo. Urbannet Fushimi Building is an office building that is a one-minute walk from Fushimi Station and offers a combination of convenient access and excellent utilities, such as division into small-scale compartments and securing parking lots for commercial vehicles.
The decision for the Acquisition was made based on the judgement that the Properties to Be Acquired can be expected to remain competitive in their areas into the future and contribute to the stability and future growth of NUD's portfolio.
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
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3. Details of the Properties to Be Acquired
(1) Urbannet Shijo Karasuma Building
Property Name | Urbannet Shijo Karasuma Building | ||||||||
Type of Specified Asset | Beneficiary interest in a real estate trust | ||||||||
Name of Trustee | Sumitomo Mitsui Trust Bank, Limited | ||||||||
Trust Agreement Term | From November 8, 2023 to November 30, 2033 | ||||||||
Land | 101 Shijo-dori Muromachi Higashi-iruKankoboko-cho, Shimogyo Ward, | ||||||||
Kyoto City, Kyoto, and two other parcels | |||||||||
Location | |||||||||
101 Shijo-dori Muromachi Higashi-iruKankoboko-cho, Shimogyo Ward, | |||||||||
(Note 1) | Building | Kyoto City, Kyoto, and others | |||||||
| 101 Shijo-dori Muromachi Higashi-iru Kankoboko- | |||||||||
cho, Shimogyo Ward, Kyoto city, Kyoto | |||||||||
The Property is located in the Shijo-Karasuma area, the center of the | |||||||||
office market in Kyoto, and is located in Kyoto's rarest location with high | |||||||||
Location, Etc. | visibility on the corner of the Shijo-Karasuma intersection and directly | ||||||||
connected to the nearest subway station. | |||||||||
Two train lines are available; the Kyoto Municipal Subway Karasuma | |||||||||
Line and the Hankyu Railway Kyoto Line, via which access to Kyoto | |||||||||
Station and other places in Kyoto City is available. | |||||||||
Access | Directly connected to Shijo Station on the Kyoto Municipal Subway | ||||||||
Karasuma Line | |||||||||
Property | Directly connected to Karasuma Station on the Hankyu Railway Kyoto Line | ||||||||
The Property is an office/commercial complex building of commercial | |||||||||
Characteristics | facilities from the basement to the third floors and office floors from the | ||||||||
fourth to the seventh floors. | |||||||||
The office space offers excellent layout efficiency with an office standard | |||||||||
Building | floor space of approximately 480 tsubo, ceiling height of 2,700 mm, OA | ||||||||
floor of 100 mm. The total floor area is approximately 5,000 tsubo, and | |||||||||
Characteristics, | |||||||||
Etc. | among properties with a total floor area of 3,000 tsubo or more in Kyoto | ||||||||
City, the building age is the youngest. It is also equipped with high facility | |||||||||
specifications. | |||||||||
The commercial facility LAQUE Shijo Karasuma is occupied by shops that | |||||||||
sell goods, food and beverages, and services that mainly target women in | |||||||||
their 30s. | |||||||||
Area (Note 1) | Land | 2,505.64 m2 | |||||||
Building | 16,088.35 m2 | ||||||||
Type of Ownership | Fee simple ownership for both land and building | ||||||||
Use of Building | Offices and stores | ||||||||
Structure of Building (Note 1) | Steel-framed and reinforced concrete structure with flat roof, 7 stories | ||||||||
with 1 basement floor | |||||||||
Construction Completion | October 2010 | ||||||||
(Note 1) | |||||||||
Planned Acquisition Price | 9,700 million yen | ||||||||
Appraisal | |||||||||
Appraiser | Japan Real Estate Institute | ||||||||
Appraisal Value | 9,960 million yen | ||||||||
Survey Date | September 1, 2023 | ||||||||
Property Manager | NTT Urban Value Support, Inc. | ||||||||
Collateral | None | ||||||||
Tenant Details (Note 2) | |||||||||
Total Number of Tenants | 34 | ||||||||
Monthly Rent (Note 3) | 61 million yen (including common area charges) | ||||||||
Tenant Security Deposits | 526 million yen | ||||||||
Total Leasable Space | 9,696.79 m2 | ||||||||
Total Leased Space | 9,436.18 m2 | ||||||||
Change in Occupancy Rate | July 2019 | July 2020 | July 2021 | July 2022 | July 2023 | ||||
98.8% | 95.7% | 81.7% | 78.9% | 97.3% | |||||
PML (Note 4) | 2.5% | ||||||||
| Takenaka Corporation | |||||||||
Other Special Notes | ・ A pass-through-type master lease agreement with the trust trustee as | ||||||||
the lessor and NTT Urban Development as the lessee will be concluded, | |||||||||
and in addition, the lessee will conduct subleasing. |
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
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(Note1) Each piece of information in "Location" (excluding residential indication), "Area," "Structure of Building" and "Construction Completion" is based on the information indicated in the certificate of registered matters. The "Area (Building)" is the total floor space of the entire building. The same applies hereinafter.
(Note2) "Tenant Details" indicate figures as of July 31, 2023. "Total Number of Tenants" indicates the figure that adds the number of end tenants (sublessees) to the number to tenants. Except for the total leasable space, figures exclude the portion of rental rooms temporarily used as sections for events.
(Note3) "Monthly rent" indicate figures for only fixed rent after excluding variable rent.
(Note4) The PML, or probable maximum loss, refers to the probability of the maximum loss expected to result from an earthquake. Although there is no single precise definition of PML, PML here is based on the event of the maximum earthquake that can be expected to occur in the region where the subject building is located (probable maximum earthquake = PME: an earthquake of a size that has a 10% probability of occurring within 50 years = occurs once every 475 years) occurring and is represented by expressing the construction costs required to restore the post-PME building to its pre-PME state as a percentage of the total construction costs required to reconstruct the building (= replacement cost). The figure does not take into account the impact of the collapse of neighboring buildings or fire, water, and other damages. The PML value of the entire building is indicated. The same applies hereinafter.
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
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(2) Urbannet Fushimi Building
Property Name | Urbannet Fushimi Building | ||||||||
Type of Specified Asset | Beneficiary interest in a real estate trust | ||||||||
Name of Trustee | Sumitomo Mitsui Trust Bank, Limited | ||||||||
Trust Agreement Term | From November 8, 2023 to November 30, 2033 | ||||||||
Location | Land | 1-1012-5 Nishiki, Naka Ward, Nagoya City, Aichi, and seven other parcels | |||||||
Building | 1-1012-5 Nishiki, Naka Ward, Nagoya City, Aichi, and others | ||||||||
(Residential indication) 1-10-20 Nishiki, Naka Ward, Nagoya City, Aichi | |||||||||
The Property is located in the Fushimi area, which is halfway between | |||||||||
the bustling Meieki and Sakae areas of Nagoya City, and within a one- | |||||||||
Location, Etc. | minute walk of Fushimi Station and along Fushimi-dori, a main road | ||||||||
that runs north-south through Nagoya City, which makes it a highly | |||||||||
convenient location for transportation. | |||||||||
Property | Access | One-minute walk from Fushimi Station on the Nagoya Municipal Subway | |||||||
Higashiyama Line and Tsurumai Line | |||||||||
Characteristics | |||||||||
The standard floor of the Property is a useful regular-shaped 311 tsubo | |||||||||
Building | rental office space that has no pillars in the center and can be divided from | ||||||||
a minimum span of 33 tsubo. With a ceiling height of 2,700 mm, individual | |||||||||
Characteristics, | |||||||||
air conditioning, and 64 parking lots for sales personnel, the demand for | |||||||||
Etc. | sales offices and need to secure human resources give the property a | ||||||||
reasonable level of competitiveness in the area. | |||||||||
Area | Land | 1,709.74 m2 | |||||||
Building | 14,091.85 m2 | ||||||||
Type of Ownership | Fee simple ownership for both land and building | ||||||||
Use of Building | Office | ||||||||
Structure of Building | Steel-framed structure with flat roof, 11 stories | ||||||||
Construction Completion | June 2003 | ||||||||
Planned Acquisition Price | 8,750 million yen | ||||||||
Appraisal | |||||||||
Appraiser | Japan Real Estate Institute | ||||||||
Appraisal Value | 9,560 million yen | ||||||||
Survey Date | September 1, 2023 | ||||||||
Property Manager | NTT Urban Value Support, Inc. | ||||||||
Collateral | None | ||||||||
Tenant Details (Note 1) | |||||||||
Total Number of Tenants | 22 | ||||||||
Monthly Rent | 38 million yen (including common area charges) | ||||||||
Tenant Security Deposits | 349 million yen | ||||||||
Total Leasable Space | 10,332.08 m2 | ||||||||
Total Leased Space | 8.748.07 m2 | ||||||||
Change in Occupancy Rate | July 2019 | July 2020 | July 2021 | July 2022 | July 2023 | ||||
(Note 2) | 100.0% | 100.0% | 100.0% | 100.0% | 84.7% | ||||
PML | 12.9% | ||||||||
| Takenaka Corporation | |||||||||
・ A pass-through-type master lease agreement with the trust trustee as | |||||||||
the lessor and NTT Urban Value Support, Inc. as the lessee will be | |||||||||
Other Special Notes | concluded, and in addition, the lessee will conduct subleasing. | ||||||||
・ An agreement has been reached with the Seller for the Seller to remedy | |||||||||
any issues pointed out in the Building Facility Periodic Inspection Report | |||||||||
(insufficient airflow caused by leaks in smoke exhaust ducts, etc.) at the | |||||||||
Seller's responsibility and cost. |
(Note1) "Tenant Details" indicate figures as of July 31, 2023. "Total Number of Tenants" indicates the figure that adds the number of end tenants (sublessees) to the number to tenants.
(Note2) The occupancy rate as of the end of November 2023 based on valid lease agreements with tenants as of the end of September 2023 is 95.5%.
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
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4. Seller Profile
(As of October 23, 2023)
Company Name | NTT Urban Development Corporation | |
Head Office Address | 4-14-1 Sotokanda, Chiyoda Ward, Tokyo | |
Representative | Hiroshi Tsujigami, President and CEO | |
Paid-in Capital | 48,760 million yen (as of March 31, 2023) | |
Net Assets | 204,199 million yen (as of March 31, 2023) | |
Total Assets | 1,107,415 million yen (as of March 31, 2023) | |
Major Shareholder and | NTT Urban Solutions, Inc. (Shareholding ratio: 100%) | |
Shareholding Ratio | ||
Established Date | January 21, 1986 | |
(1) Acquisition, development, sales and management of real estate | ||
(2) Real estate leasing, brokerage | ||
(3) Building design, construction, construction supervising and their | ||
commissioning | ||
(4) Sale and lease of office equipment, communications equipment, fixtures | ||
Principal Business | and fittings, and interior furnishings for office buildings and residences | |
(5) Construction and sale of residences | ||
(6) Information gathering and management, research and consulting related | ||
to civil engineering, construction and real estate | ||
(7) Fee-based homes for the elderly business, and home care service business | ||
and preventive long-term care service business pursuant to the Long-Term | ||
Care Insurance Act | ||
Relationship between the Seller and NUD/UDAM | ||
The Seller holds 4.0% (56,100 units) of the total number of investment units | ||
issued and outstanding of NUD. The Seller is a parent company that holds | ||
Capital Relationship | 100.0% (4,000 shares) of the number of shares issued and outstanding of | |
UDAM. The Seller falls under the category of interested party, etc. as | ||
stipulated in the Investment Trust Act (Act No. 198 of 1951 , hereinafter | ||
referred to as the "Investment Trust Act"). | ||
Personnel | The Seller is one of the companies from which officers and employees of UDAM | |
Relationship | have been dispatched. | |
Business | The Seller falls under the category of lessee of properties owned by NUD. In | |
addition, UDAM has executed an Agreement on Information Provision with the | ||
Relationship | ||
Seller. | ||
The Seller does not fall under the category of related parties of NUD. As stated | ||
Related Parties | above, the Seller is the parent company of UDAM and falls under the category | |
of related parties of UDAM. |
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
5
5. Status of Previous Owner
The former owner of Urbannet Shijo Karasuma Building and Urbannet Fushimi Building, which are the Properties to Be Acquired, falls under the category of interested party, etc. of NUD as stipulated in the Investment Trust Act. Therefore, the status of the previous owner is herein stated.
Property Name | Urbannet Shijo Karasuma Building | Urbannet Fushimi Building | ||
Company name | NTT Urban Development Corporation | |||
owner/trustPrevious beneficiary | Relationship with | (Land) April 4, 2006 | (Land) August 7, 2001 | |
Timing of | ||||
special interested | Please refer to "4. Seller Profile" above. | |||
parties | ||||
Background, | ||||
reason, etc. of the | Purpose of the development | |||
transaction | ||||
Acquisition price | - (Note) | - (Note) | ||
acquisition | (Building) October 8, 2010 | (Building) June 9, 2003 | ||
(construction completion) | (construction completion) | |||
owner/trustFormer beneficiarybefore the owner/trustprevious | Company name | Other than special interested parties | ||
Relationship with | - | |||
Timing of | ||||
special interested | ||||
parties | ||||
Background, | ||||
reason, etc. of the | - | |||
transaction | ||||
Acquisition price | - | - | ||
acquisition | - | - | ||
(Note) This information is omitted because the previous owner held the property for more than one year. |
6. Transactions with Interested Party, Etc.
The following transactions with interested parties, etc. related to the Acquisition have been resolved by the Compliance Committee, which includes outside experts, in accordance with "Policy on Transactions with Interest Parties" of the internal rules of UDAM.
- Acquisition of Urbannet Shijo Karasuma Building and Urbannet Fushimi Building from NTT Urban Development
- Conclusion of a master lease agreement under which NTT Urban Development is the lessee of Urbannet Shijo Karasuma Building
- Conclusion of a master lease agreement with NTT Urban Value Support, Inc. (Note) as the lessee of Urbannet Fushimi Building
- Consignment of property management services for Urbannet Shijo Karasuma Building and Urbannet
Fushimi Building to NTT Urban Value Support, Inc. (Note)
(Note) It is an affiliated company of NTT Urban Development and falls under the category of interested parties, etc. stipulated in the Investment Trust Act.
7. Future Outlook
There is no change in the performance forecast for the fiscal period ending October 31, 2023 (the 42nd fiscal period) published in "Financial Report for the Fiscal Period Ended April 30, 2023" dated June 15, 2023, with the Acquisition. For details of the revision of the performance forecast for the fiscal period ending April 30, 2024 (the 43rd fiscal period) based on the Acquisition and the performance forecast for the fiscal period ending October 31, 2024 (the 44th fiscal period), please refer to "Notice Concerning Revision of Performance Forecast for the Fiscal Period Ending April 30, 2024 (the 43rd Fiscal Period) and Announcement of Performance Forecast for the Fiscal Period Ending October 31, 2024 (the 44th Fiscal Period)" separately announced today.
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
6
8. Overview of Appraisal Report
- Urbannet Shijo Karasuma Building
Property Name
Appraisal Value
Appraiser
Survey Date
Urbannet Shijo Karasuma Building
9,960 million yen
Japan Real Estate Institute
September 1, 2023
Appraisal | ||||||
Appraisal Item | Value | Remarks, Etc. | ||||
(million yen) | ||||||
Estimated by associating the value estimated by | ||||||
The value estimated by income approach | 9,960 | direct capitalization method and value estimated by | ||||
DCF method. | ||||||
Value estimated by direct capitalization method | 10,000 | |||||
［[5]÷[6]］ | ||||||
(a) | Rental revenue | 615 | Rental revenue and common service charges are | |||
recorded after assessing the level of the unit price of | ||||||
(b) | Common service charges | 166 | rent, etc. that can be received stably over the medium | |||
to long term. | ||||||
(c) Rental revenue including common | 781 | |||||
service charges [(a) + (b)] | ||||||
Utilities are recorded based on 100% occupancy rate | ||||||
Revenues | (d) | Utilities | 51 | of rental rooms, taking into account the operating | ||
on an assessment of the level of the unit price for | ||||||
status of rental rooms based on actual figures from | ||||||
past fiscal years. | ||||||
Parking and bicycle parking fees are recorded based | ||||||
Operating | (e) Parking and bicycle parking fees | 13 | usage fees that can be received stably over the | |||
medium to long term. | ||||||
(f) Other income | 20 | Credit sales and facilities rental revenue, etc. are | ||||
recorded as other income. | ||||||
[1] Latent Gross Revenues [(c) + (d) + (e) + (f)] | 865 | |||||
Losses due to vacancies, etc. are recorded based on | ||||||
(g) Losses due to vacancies, etc. | 40 | the assumption of the occupancy rate after an | ||||
assessment of the level of the stable occupancy rate | ||||||
over the medium to long term. | ||||||
Considering the situation of the lessee and other | ||||||
(h) | Bad debt loss | - | matters, it was determined that there is no need to | |||
record bad debt loss. | ||||||
[2] | Operating Revenues [[1]-(g)-(h)] | 825 | ||||
Recorded with reference to actual amounts from past | ||||||
(i) | Maintenance | 136 | fiscal years and the maintenance costs of similar | |||
properties, taking into account the individuality of the | ||||||
property. | ||||||
Recorded based on actual amounts from past fiscal | ||||||
(j) | Utilities | 97 | years, taking into account the occupancy rate, etc. of | |||
the rental rooms portion. | ||||||
Expenses | Recorded with consideration given to the average | |||||
(k) | Repair costs | 15 | annual amount of repair costs in the engineering | |||
report based on actual amounts from past fiscal | ||||||
years. | ||||||
Operating | Recorded with reference to compensation rates, etc. | |||||
The average annual amount assessed based on | ||||||
(l) | Property management fee | 23 | based on contract terms, taking into account the | |||
compensation rate for similar properties, the | ||||||
individuality of the subject property, etc. | ||||||
(m) Advertisement for leasing, etc. | 6 | assumed tenant turnover period is recorded. | ||||
The tax amount is recorded with consideration given | ||||||
(n) Tax and public dues | 150 | to related materials and the content of tax burden | ||||
adjustment measures, etc. | ||||||
(o) | Insurance | 2 | Recorded with consideration given to insurance | |||
premium rates, etc. for similar buildings. | ||||||
(p) | Other expenses | 33 | Record system usage fees, etc. as other expenses | |||
[3] | Operating Expenses | 464 | ||||
［(i)+(j)+(k)+(l)+(m)+(n)+(o)+(p)］ | ||||||
[4] Net Operating Income [[2]-[3]] | 361 | |||||
Assessed the number of months of stable security | ||||||
(q) Profit through management of temporary | 5 | deposits over the medium to long term and assessed | ||||
deposits, etc. | the profit through multiplying said number by the | |||||
occupancy rate and the investment yield. | ||||||
Assessed with consideration given to the level of | ||||||
(r) | Capital Expenditures | 36 | capital expenditures in similar properties, the age of | |||
the building, and the annual average amount of repair | ||||||
and renewal costs in the engineering report. | ||||||
[5] | Net Cash Flow [[4]+(q)-(r)] | 330 | ||||
Assessed based on the standard yield for each district | ||||||
taking into account the spread attributable to the | ||||||
[6] Capitalization rate | 3.3% | location conditions, building conditions, etc. of the | ||||
subject property, and the future uncertainties and | ||||||
transaction yields related to similar real estate. | ||||||
Value estimated by discounted cash flow (DCF) | 9,920 | |||||
method | ||||||
Discount rate | 3.1% | |||||
Terminal capitalization rate | 3.4% | |||||
Value estimated by cost approach | 10,100 | |||||
Land ratio | 86.6% | |||||
Building ratio | 13.4% | |||||
Other matters noted by the appraiser in conducting appraisal | None |
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
7
(2) Urbannet Fushimi Building
Property Name | Urbannet Fushimi Building | ||||||||
Appraisal Value | 9,560 million yen | ||||||||
Appraiser | Japan Real Estate Institute | ||||||||
Survey Date | September 1, 2023 | ||||||||
Appraisal | |||||||||
Appraisal Item | Value | Remarks, Etc. | |||||||
(million yen) | |||||||||
Estimated by associating the value estimated by | |||||||||
The value estimated by income approach | 9,560 | direct capitalization method and value estimated by | |||||||
DCF method. | |||||||||
Value estimated by direct capitalization method | 9,640 | ||||||||
［[5]÷[6]］ | |||||||||
(a) | Rental revenue | 422 | Rental revenue and common service charges are | ||||||
recorded after assessing the level of the unit price of | |||||||||
(b) | Common service charges | 133 | rent, etc. that can be received stably over the medium | ||||||
to long term. | |||||||||
(c) Rental revenue including common service | 556 | ||||||||
charges [(a) + (b)] | |||||||||
Utilities are recorded based on 100% occupancy rate | |||||||||
Revenues | (d) | Utilities | 49 | of rental rooms, taking into account the operating | |||||
on an assessment of the level of the unit price for | |||||||||
status of rental rooms based on actual figures from | |||||||||
past fiscal years. | |||||||||
Parking and bicycle parking fees are recorded based | |||||||||
Operating | (e) Parking and bicycle parking fees | 26 | usage fees that can be received stably over the | ||||||
medium to long term. | |||||||||
(f) | Other income | 1 | Fees for installation of mobile phone base station | ||||||
equipment, etc. are recorded as other income. | |||||||||
[1] Latent Gross Revenues [(c) + (d) + (e) + (f)] | 633 | ||||||||
Losses due to vacancies, etc. are recorded based on | |||||||||
(g) Losses due to vacancies, etc. | 38 | the assumption of the occupancy rate after an | |||||||
assessment of the level of the stable occupancy rate | |||||||||
over the medium to long term. | |||||||||
Considering the situation of the lessee and other | |||||||||
(h) | Bad debt loss | - | matters, it was determined that there is no need to | ||||||
record bad debt loss. | |||||||||
[2] | Operating Revenues [[1]-(g)-(h)] | 595 | |||||||
Recorded with reference to actual amounts from past | |||||||||
(i) | Maintenance | 63 | fiscal years and the maintenance costs of similar | ||||||
properties, taking into account the individuality of the | |||||||||
property. | |||||||||
Recorded based on actual amounts from past fiscal | |||||||||
(j) | Utilities | 56 | years, taking into account the occupancy rate, etc. of | ||||||
the rental rooms portion. | |||||||||
Expenses | Recorded with consideration given to the average | ||||||||
Recorded with reference to compensation rates, etc. | |||||||||
(k) | Repair costs | 20 | annual amount of repair costs in the engineering | ||||||
report based on actual amounts from past fiscal | |||||||||
years. | |||||||||
Operating | (m) Advertisement for leasing, etc. | 3 | based on contract terms, taking into account the | ||||||
The average annual amount assessed based on | |||||||||
(l) | Property management fee | 13 | compensation rate for similar properties, the | ||||||
individuality of the subject property, etc. | |||||||||
assumed tenant turnover period is recorded. | |||||||||
The tax amount is recorded with consideration given | |||||||||
(n) Tax and public dues | 64 | to related materials and the content of tax burden | |||||||
adjustment measures, etc. | |||||||||
(o) | Insurance | 2 | Recorded with consideration given to insurance | ||||||
premium rates, etc. for similar buildings. | |||||||||
(p) | Other expenses | - | There are no particular expenses to be recorded as | ||||||
other expenses. | |||||||||
[3] | Operating Expenses | 224 | |||||||
［(i)+(j)+(k)+(l)+(m)+(n)+(o)+(p)］ | |||||||||
[4] Net Operating Income [[2]-[3]] | 371 | ||||||||
Assessed the number of months of stable security | |||||||||
(q) Profit through management of temporary | 4 | deposits over the medium to long term and assessed | |||||||
deposits, etc. | the profit through multiplying said number by the | ||||||||
occupancy rate and the investment yield. | |||||||||
Assessed with consideration given to the level of | |||||||||
(r) | Capital Expenditures | 47 | capital expenditures in similar properties, the age of | ||||||
the building, and the annual average amount of repair | |||||||||
and renewal costs in the engineering report. | |||||||||
[5] | Net Cash Flow [[4]+(q)-(r)] | 327 | |||||||
Assessed based on the standard yield for each district | |||||||||
taking into account the spread attributable to the | |||||||||
[6] Capitalization rate | 3.4% | location conditions, building conditions, etc. of the | |||||||
subject property, and the future uncertainties and | |||||||||
transaction yields related to similar real estate. | |||||||||
Value estimated by discounted cash flow (DCF) | 9,480 | ||||||||
method | |||||||||
Discount rate | 3.2% | ||||||||
Terminal capitalization rate | 3.5% | ||||||||
Value estimated by cost approach | 10,200 | ||||||||
Land ratio | 81.8% | ||||||||
Building ratio | 18.2% | ||||||||
Other matters noted by the appraiser in conducting appraisal | None |
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
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[Attachment]
[Reference Material 1] Outside View of the Properties to Be Acquired and Location Map
[Reference Material 2] Table of Portfolio Following the Acquisition
- NUD's website ishttps://nud-reit.co.jp/en/
- Neither NUD nor UDAM makes any assurance or warranty with respect to the completeness or accuracy of this English translation. For more complete and accurate information, please refer to the original announcement in Japanese.
[Reference Material 1] Outside View of the Properties to Be Acquired and Location Map
(1) Urbannet Shijo Karasuma Building
Photo: Forward Stroke Inc.
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
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(2) Urbannet Fushimi Building
Note: This document is a press release for a public announcement regarding NUD's acquisition of properties and has not been prepared for the purpose of soliciting any investment. We caution investors to refer to the prospectus for securities registration for the issuance of new investment units and secondary offering of investment units and the notices of amendments thereto, and to undertake any investment decision at their own judgment and responsibility.
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Disclaimer
NTT UD REIT Investment Corporation published this content on 23 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 03:12:47 UTC.
