Starhill Global REIT sells prime Tokyo retail property for $29.9m
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Proceeds will be used to pay off Yen loans.
Starhill Global REIT has divested Roppongi Terzo, a prime retail property located in Tokyo, for $29.9m.
This is above the property’s last valuation of $29.2m, and the sale consideration translates to a yield of 4.4%.
After the transaction, the REIT’s portfolio in Japan will be reduced to four properties.
The net sale proceeds would be used to repay the Yen loans and/or for working capital purposes. SGREIT’s gearing is expected to decrease from 35.7%3 to 35.1% assuming that the net sales proceeds are substantially used to repay the Yen loans
Questions & Answers
Q.What will Starhill Global REIT use the money from the sale for?
What will Starhill Global REIT use the money from the sale for?
The net sale proceeds will be used primarily to repay existing Yen loans. There is also an option for the funds to be used for general working capital purposes.
Q.How does the sale price compare to the property's last valuation?
How does the sale price compare to the property's last valuation?
The property was sold for $29.9m, which is above its last valuation. The previous valuation of the Roppongi Terzo property was $29.2m.
Q.How many properties will Starhill Global REIT own in Japan after this transaction?
How many properties will Starhill Global REIT own in Japan after this transaction?
Following the sale of Roppongi Terzo, Starhill Global REIT's portfolio in Japan will be reduced. The REIT will own four properties in the country.
Q.How will the sale impact Starhill Global REIT's gearing ratio?
How will the sale impact Starhill Global REIT's gearing ratio?
The REIT's gearing is projected to decrease from 35.7% to 35.1%. This reduction is expected if the net sale proceeds are substantially used to repay Yen loans.
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