Singapore-listed Starhill Global REIT has announced its divestment of the Roppongi Primo Building, a mixed-use property located in Tokyo, for approximately S$9.51 million. The sale price is equal to the latest independent valuation of the property as at 31 December 2012.
The rationale for the sale is that the Roppongi Primo Building, being one of the smallest properties in Starhill Global REIT’s portfolio by asset value of just 0.4%, would improve the occupancy of its Japan portfolio from 92.7%2 to 94.3%. The sale is part of Starhill Global REIT’s approach in reviewing and re-balancing its Japan portfolio.
|Starhill Global REIT invests primarily in retail and office properties such as Wisma Atria in Singapore pictured above.|
Mr Ho Sing, Chief Executive Officer of YTL Starhill Global, said, “This divestment is part of Starhill Global REIT’s approach in reviewing and re-balancing our Japan portfolio. The sale price is attractive as it translates to a yield of 3.2%. The fluctuating Yen has no impact on this deal as the Japan assets were fully hedged with Yen loans and the net sale proceeds would be used to substantially repay the loans. Starhill Global REIT’s gearing would drop marginally by 0.3% to 30.0%3 as a result.”