Croesus Retail Trust buys two Japanese malls for 6.1b yen

IN a separate announcement from its financial earnings, Croesus Retail Trust on Friday said that it has inked deals to buy two retail properties in Japan.

They are Mallage Saga, the second largest shopping mall in Saga City, in Japan's Saga Prefecture; and Feeeal Asahikawa, a large-scale shopping centre in the city of Asahikawa, in Hokkaido.

The purchase consideration is 6.11 billion yen (S$74.5 million) which represents an 8.8 per cent discount to their valuation of 6.7 billion yen as at April 15, 2016.

This will be funded using mostly equity funding, supplemented by net proceeds from the issuance of new Japanese onshore five-year specified bonds and from the issuance of 5 per cent fixed rate notes due in 2020 under its US$500 million Euro Medium Term Note Programme.

When the acquisitions are completed, CRT's total portfolio value, comprising its existing assets and the two new properties, will grow from 99.8 billion yen to 106.5 billion yen.

For the same FY2015 period, the pro forma distribution per unit (DPU) of the enlarged portfolio will increase to about 7.83 Singapore cents, which is 2.2 per cent higher than the pro forma DPU of the pre-acquisitions portfolio of approximately 7.66 cents.