Tokyu REIT buys Tokyo office building for ¥11.9bn and other APAC REIT news

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Tokyu REIT has agreed to buy the OKI Business Center No.5 in Tokyo for ¥11.9bn, while also disposing of its OKI System Center in the city of Warabi for ¥6.85bn.

The OKI Business Center No.5 office building is fully occupied with 18,102 sq.m. of lettable area and is located within walking distance of the Tamachi station on the JR Yamanote and Keihin-Tohoku lines.

The property, which is let until 2030, was acquired on a NOI yield of 5.31%.

The OKI System Center has been fully occupied by a single tenant for the past five years and was acquired by the REIT for ¥4.53bn in 2013.

“In the area near Tamachi Station, the station nearest to the asset to be acquired, a large-scale mixed-use development called ‘msb Tamachi’ has been completed and multiple redevelopment projects are underway,” the company said.

Tokyu REIT shares finished trading 4.36% higher at ¥141,100 on Tuesday.

Index Change Value at close
S&P/ASX 200 A-REIT +1.88% 1,298.30
S&P/ASX 200 -0.08% 5,894.80
FTSE ST REITS +0.44% 852.71
STI +0.13% 2,485.83
Tokyo Stock Exchange REIT +1.17% 1,717.27
Nikkei 225 -0.44% 23,454.89
Hang Seng REIT +0.62% 5,649.47
Hang Seng +0.38% 24,732.76

Ale Property shares fall on rent determinations

ASX-listed Ale Property Group announced on Monday that it had received rent determinations on about half of its portfolio, with independent valuers determining that rents would remain substantially unchanged from rents preceding November 2018.

The A-REIT said the rent for 79 properties subject to review had increased by 4.4%, which included the rents for the 36 properties that were previously agreed to increase by the full 10% cap.

On top of the 2018 rent reviews, 85 of Ale’s 86 property leases continue to benefit from annual CPI increases.

The company said it was undertaking a detailed review of these issues, and would provide further updates on property valuations, capital management and distribution policy.

Shares in Ale Property closed 5.4% lower at A$4.49 on Monday.