Saizen REIT has secured a loan worth SGD8.9 million for its working capital.

Singapore’s first and only Japan-focused residential REIT Saizen (SGX:T8JU) announced on 28 August that it has, through TK operator Godo Kaisha Gyotatsu, entered into an agreement for a JPY740 million (SGD8.9 million) loan from The Kitakyushu Bank Limited on 29 August 2014.

According to the REIT, the loan will be deployed towards its working capital until such time when they are required for other purposes, which may include property acquisitions.

The interest rate for the loan is fixed at 1.462% per annum for the first 5 years after which it will be decided at 5-year intervals based on the Tokyo Swap Reference Rate plus 1.2%. Tenure for the loan is for a period of 22 years up to 26 August 2036.

As security for the loan Saizen REIT has placed its properties, Cosmos Kokura Eki Mae and AS Residence Hakataekiminami, which are valued at an aggregate of JPY1,384 million (SGD16.6 million).

As a result of the loan, Saizen REIT’s gearing has been revised from 36.5% to 38%.

Units of Saizen REIT are currently listed on the Singapore Exchange at SGD0.955.

Saizen REIT has secured a loan worth SGD8.9 million for its working capital.
Saizen REIT has secured a loan worth SGD8.9 million for its working capital.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.