Aerial view of Osaka, Japan.
The Straits Trading Company on Wednesday (18 January) unveiled plans to acquire the rights to a freehold rental residential property in Osaka, Japan for 925 million yen (S$11.6 million).
This comes as the investment firm agreed to buy two companies, Nikko AM Japan Property I-I and Nikko AM Japan Property I-II, which own 100 percent trust beneficiary interest in the Japanese property.
Dubbed Splendid Namba, the 14-storey property has a net lettable area of about 32,214 sq ft and comprises 120 apartments. It was completed in March 2015 and has an occupancy rate of 95 percent as at end-December 2016.
Situated near the metro line, the property is easily accessible to the prime shopping area of Shinsaibashi and the Namba business district.
In a statement, Straits Trading revealed that the consideration will be funded by bank borrowings and internal resources.
“The transaction presents a good opportunity to incorporate a well-located, income-producing asset to assemble a portfolio of residential apartments in key Japanese cities,” it said.
Straits Trading does not expect the transaction to materially affect the group’s earnings per share and net tangible asset per share for the current financial year ending 31 December 2017.
“The transaction will not have any impact on the issued share capital of the company,” it noted.