Japan-focused residential REIT, Saizen (SGX:T8JU), announced on 31 August that it has entered into a sale and purchase agreement via its wholly owned subsidiary to acquire Strasse Nanokawa for JPY513 million (SGD6 million).

The property comprises of 42 residential units and 20 car parking lots and is currently generating annual revenue and net property income of approximately JPY 30.5 million (SGD0.4 million) and JPY 21.8 million (SGD0.3 million) respectively said the REIT.

This are equivalent to about 0.8% of both Saizen REIT’s annual revenue and net property income for the financial year ended 30 June 2015.

Currently 39 out of 42 residential units and 5 out of 20 car parking lots are occupied. “While the current occupancy rate of the car parking lots is low, the asset manager intends to adopt more pro-active leasing strategies for the car parking units after the acquisition to increase the occupancy rate”, said the REIT in its statement.

The acquisition and its related costs are expected to be funded by internal cash resources.

Units of Saizen REIT are currently listed on the Singapore Exchange at SGD0.815.