The manager of Saizen Real Estate Investment Trust (Saizen REIT) said associate YK Kokkei has agreed to acquire Cosmo Reveur Sangenjaya in Tokyo for a cash consideration of JPY 590 million ($9.4 million).
Cosmo Reveur Sangenjaya was built in May 1989 and comprises eight residential units, nine car parking lots and 1 motorcycle parking lot. CRS is located in the Setagaya ward. It is within 9 minute-walk from the Sangen-Jaya Station which is two stops away from the Shibuya Station in central Tokyo.
Currently, CRS generates annual revenue and net property income of JPY 38.6 million ($0.6 million) and JPY 28.3 million ($0.5 million) respectively, which are equivalent to about 1.0% and 1.1% of Saizen REIT’s annual revenue and net property income in the financial year ended 30 June 2011 (FY2011).
Based on a valuation as at 27 July 2012 prepared by Le Futur Corporation, an independent valuer commissioned by the Manager, CRS is valued at JPY 593 million ($9.5 million).
Saizen REIT’s manager said the acquisition and its related costs are expected to be financed with cash resources initially.
YK Kokkei will have full ownership of the entire building block of CRS and full title of the freehold land.
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