Singapore-listed Starhill Global REIT announced on 15 May that it has divested a three-storey retail property located in Harajuku, Tokyo, for JPY410.2 million (USD3.6 million).

The property, Harajuku Secondo, was valued at JPY335.0 million as at 31 March 2017 and as such, the divestment represents a 22.4% premium.

Starhill Global REIT did not disclose the buyer of the property in its statement.

Harajuku Secondo features a net lettable area of 2,249 square feet and accounted for 6.6% of Starhill Global REIT’s Japanese portfolio, and 0.1% of its total portfolio by asset value.

With the divestment, Stahill Global REIT’s portfolio in Japan will be reduced to three properties, and its exposure to Japan by asset value will be reduced by approximately 0.1% to 1.9% of its total asset value.

Net proceeds from the sale will be deployed towards repaying the REIT’s JPY borrowings, and working capital purposes.

“The divestment is part of our strategy to streamline our portfolio and focus on our strengths”, said Ho Sing, CEO of the REIT’s manager, in a statement on the results.

“Since 2013, we have divested SGD57 million of Japanese properties but redeployed and reinvested AUD336 million into new prime properties in Perth and Adelaide in Australia”, he said, adding that the REIT will continue to refine its portfolio.

Starhill Global REIT finished the trading day about 0.66% lower from its previous close on the Singapore Exchange to end at SGD0.745.