Straits Trading to buy residential property in Japan for 925m yen

PROPERTY firm Straits Trading Company on Wednesday said it plans to buy for 925 million yen (S$11.6 million) the rights to a rental residential property in Osaka, Japan.

The property, Splendid Namba II, is a 14-storey freehold rental residential property located in Naniwa-ku, Osaka, Japan. Completed in March 2015, the property has a net lettable area of about 2,992.8 square metres, comprising 120 apartment units. As at end-December 2016, the property has an occupancy rate of 95 per cent.

The property is close to the metro line, and is connected to the prime shopping area of Shinsaibashi and Namba business district.

"The transaction presents a good opportunity to incorporate a well-located, income-producing asset to assemble a portfolio of residential apartments in key Japanese cities," the company said.

Straits Trading will buy all of two companies, Nikko AM Japan Property I-I and Nikko AM Japan Property I-II. These firms, in turn, own 100 per cent trust beneficiary interest in the property.