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.