Thakral acquires Osaka office property

Japanese sumo wrestling pens at Daiso

Thakral has acquired the 10-storey Nikke Yotsubashi Building in Osaka, bringing the Singapore-listed company’s portfolio of Japan real estate investments to 11 properties, it said in a filing to SGX Monday.

The building is centrally located on Yotsubashi Suji, near the Yotsubashi subway station, the filing said, adding the property has a gross floor area of 7,524 square meters and is nearly fully tenanted with a 95 percent occupancy rate.

The latest investment in Japan is part of the company’s strategy to broaden its asset and earnings base in Japan, Thakral said.

“Japan’s economy is enjoying a strong flow of both visitors and investments because of its improving economy and relatively stable currency. It is seeing steady financial and business growth,” Inderbethal Singh Thakral, the CEO of Thakral, said in the statement.

“The revival of Japan as a key business and leisure destination should assist in improving Japanese real estate values. We are therefore strengthening our presence to take benefit of the upside of such investments to enhance returns to our shareholders,” he added.

The investments will be funded via bank borrowings and internal sources, Thakral said.

The acquisition was made via Thakral’s direct Singapore subsidiary TJP Pte., or TJPP, which is a pooled investment vehicle with equity interests from the company and co-investors for properties in Japan, the filing said.

In addition, TJPP has acquired the Kitahama Building from Thakral’s other pooled investment vehicle, Thakral Japan Properties, in a move to streamline the investment portfolio, the filing said. Kitahama Building is also located in Osaka, near the Kitahama station on the Sakaisuji Line, the filing said.

Thakral will hold around 53 percent of TJPP, the filing said.

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