Thakral invests S$42m in Osaka office buildings

Singapore

THAKRAL Corporation, a trading and property firm, on Tuesday said it has invested S$42 million in two office buildings in Osaka, Japan. The investment will be made through Thakral Japan Properties Pte Ltd - a pooled investment vehicle - with equity from the group, and other investors. Thakral will hold about 50 per cent of the equity in the vehicle.

The two buildings - Yotsubashi Nakano Building and Dai-chi Jyuken Yotsubashi Building - are located close to the Shinsaibashi area, a business and commercial district, and have been 90 per cent tenanted by mainly Japanese firms. The purchase price translated to S$3,180 and S$3,420 per square metre of built-up area respectively. These are priced at levels of similar buildings in the area, and are below replacement cost after excluding land cost, Thakral said.

This is on top of its recent S$6.8 million investment in a residential project in a suburb of Sydney, Australia. The 21-unit project began in September, and is expected to be completed in 16 months. Thirteen units have been sold so far. Thakral's total investment in Australia stands at over S$40 million.

Shares of Thakral last traded at S$0.025.