Thakral: Acquired 3 Osaka properties valued at around S$66 million

Singapore five-dollar note Photo by Leslie Shaffer

Thakral Corp. said on Monday that it acquired three properties in Osaka, Japan, with a total value of around 5.46 billion yen, or S$66 million, under a new “pooled” investment structure.

The acquisitions are part of Thakral’s overall strategy to broaden its asset and earnings base in Japan amid the country’s strong economic fundamentals and a tourism boom, it said.

Two of the properties are new to the company: the Hotel White Bear Family Namba Motomachi and an office building, Utsubo East Building, it said in a filing to SGX after the market close on Monday.

The third building, the Legal Itachibori Building, is being acqurired from Thakral’s current pooled investment vehicle, which has a different shareholding structure than the new vehicle, it said.

The investment structure involves Thakral’s around 50 percent-owned direct subsidiary TJP Pte., which has equity interest from the company and co-investors, and its indirect subsidiary, SJ Property Investments, which is held by TJPP, it said.

“Osaka, the second biggest metropolis in Japan, is enjoying strong demand due to a surge of activity in retail spending, hotel development and infrastructure investment ahead of the 2020 Olympic Games in Tokyo,” it said. “Hotel WBF Namba Motomachi is well positioned to benefit from the additional supply of hotel rooms coming up in Namba as the area has started to attract more tourists.”

Thakral also noted that Osaka has bid to host the 2025 Expo and is a front-runner for Japan’s first casino resort, which would likely increase its appeal to Asian tourists and spur new demand for hotel accommodation.

The Hotel WBF Namba Motomachi has 111 rooms and is located around seven minutes walk from the Namba Station and directly serves Kansai International Airport as a gateway for tourists coming to Osaka from abroad, it said. The hotel was purchased on a fixed lease back for five years to the current operator, White Bear Family, which is a brand operating more than 30 hotels across Japan, including 11 in Osaka, it said.

Utsubo East Building is an office building in Osaka’s central business district (CBD), with a gross floor area of around 5,000 square meters and a current occupancy rate of 98 percent, it said.

The Legal Itachibori Building is also an office building in Osaka’s CBD with a gross floor areaa of around 5,600 square meters and an occupancy rate of around 75 percent, Thakral said.

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