Japan Retail Fund sells Sendai mall for US$89m

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Japanese retail REIT Japan Retail Fund (JRF) has disposed of a suburban mall in the city of Sendai to an unnamed buyer for JPY 9.92bn (US$89.3m).

The AEON Sendai Nakayama shopping centre has more than 43,000 sq.m. of floor area across three buildings, the seller said in an announcement.

It is located 6km north of the Sendai, the capital city of the Miyagi Prefecture and one of the largest cities north of Tokyo.

JRF, which is managed by asset manager Mitsubishi Corp-UBS Realty, said the deal was part of its strategy to dispose of “sub assets” and reinvest in core properties.

“JRF is optimizing its asset structure in response to changes in the environment surrounding retail properties including changes in demographics in Japan, expanding inbound tourism, advances in e-commerce, and increasing leisure time,” the REIT said.

The property’s latest book value came in at JPY 8.5bn, providing JRF with a JPY 1.1bn gain from the sale.

Listed on the Tokyo stock exchange, JRF is Japan’s largest retail-focused REIT with a portfolio worth JPY 905.7bn (US$8.2bn), as of end-2018.

Mitsubishi Corp UBS Realty is a joint venture between Mitsubishi Corporation and UBS.