Following my updates on Starhill Global REIT’s recent financial results ( Starhill Global REIT 3Q2017/18 Results Is Disappointing ) , the manager of the REIT has announced the divestment of one of its Japan properties. The divested property is located in the Nakameguro district and is a 4-storey building mainly for retail use. The property by asset value accounts for 8.6% of the Japan portfolio and 0.2% of Starhill Global REIT’s portfolio.
The property is valued at JPY 420 million (estimate S$5.1 million) but was sold for JPY 525 million. I consider it as a decent transaction. If you didn’t know, the property was acquired in 2007 together with 6 other properties in Tokyo for approximate S$182.5 million. The Nakameguro place property was one of the property within the Fund Creation Portfolio which was then owned by Fund Creation Co Pte Ltd.
Reason for the sale?