Croesus Retail Trust buys Hiroshima mall for over $40m
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It is expected to provide stable income.
According to KGI Fraser, Croesus Retail Trust (CRT) is acquiring Fuji Grand Natalie, a suburban retail property in Hiroshima Prefecture.
It added, “The NPI yield of the acquisition is 6.3 percent using the purchase consideration of JPY3.3b. The total acquisition cost is JPY3.63b (S$44.3m), funded by equity using part of the net proceeds from the private placement raised earlier.”
In its report KGI Fraser cited steady income stream as the property “is master-leased to Fuji Co Ltd/Ehime (8278 JP) till end-March 2024 on a fixed monthly rent basis.”
RHB meanwhile described Fuji Grand Natalie as an income-producing large scale suburban retail mall in Hatsukaichi City with 100 percent level of occupancy.
The acquisition, according to RHB, will be accretive to CRT’s shareholders.
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Questions & Answers
Q.What is the expected net property income yield of this acquisition?
What is the expected net property income yield of this acquisition?
The acquisition is expected to provide a net property income (NPI) yield of 6.3 percent. This calculation uses the purchase consideration of JPY3.3 billion for the property.
Q.How is Croesus Retail Trust funding this purchase?
How is Croesus Retail Trust funding this purchase?
The acquisition, with a total cost of JPY3.63 billion (S$44.3 million), is being funded by equity. This comes from a portion of the net proceeds previously raised through a private placement.
Q.Who is currently leasing the Fuji Grand Natalie property?
Who is currently leasing the Fuji Grand Natalie property?
The property is master-leased to Fuji Co Ltd/Ehime, a company listed as 8278 JP. This lease agreement runs until the end of March 2024 on a fixed monthly rent.
Q.What is the current occupancy rate of Fuji Grand Natalie?
What is the current occupancy rate of Fuji Grand Natalie?
The Fuji Grand Natalie mall in Hatsukaichi City is described as having a 100 percent level of occupancy. RHB characterised it as an income-producing, large-scale suburban retail mall.