You are here
Straits Trading unit to divest 4 freehold Osaka residential properties
THE Straits Trading Company said its unit has entered into conditional deals to divest four freehold residential properties in Osaka for 8.25 billion yen (S$100 million), realising an 890-million yen gain.
The company in its media statement on Wednesday announced that its subsidiary Straits Real Estate (SRE) had entered into conditional sale-and-purchase agreements for the four properties, which were acquired in 2016 and 2017 for 7.36 billion yen in total.
Valuation done as at June 30 showed that these properties with a total of 516 apartment units - Luxe Taisho, Luxe Shin Osaka, Luxe Dome Mae and Splendid Namba II - were worth 7.82 billion yen.
Straits Real Estate's chief executive Desmond Tang said: "The gains we realise from this divestment will allow us to seek out new real estate investment opportunities in Japan or other markets. Globally, major markets are presenting attractive investment opportunities due to stressed economic or capital conditions. SRE is actively considering some of these markets for investment."
Upon completion of the divestment, SRE's residential portfolio in Japan will comprise 600 apartment units across eight freehold properties in Tokyo.
The statement added that the company "remains positive about Japan's real estate outlook, supported by its generally resilient economy".
Straits Trading shares rose four Singapore cents or 1.94 per cent to S$2.10 on Wednesday before the announcement.