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Thakral adds Osaka building to its Japan property portfolio
MAINBOARD-LISTED Thakral Corporation has invested in an 11-storey office building in Osaka, adding to its portfolio of properties in Japan, it said in a bourse filing on Monday.
The property, Umeda Pacific Building, sits on 861 square metres (sq m) of freehold land, and has a gross floor area of 9,179 sq m and a net rentable area of 6,359 sq m.
Thakral did not disclose the investment amount or the stake it has taken in the building.
The investment, made through its subsidiary Thakral Umeda Properties, was funded by bank borrowings, internal resources and co-investors.
The subsidiary is a pooled investment joint venture set up for further investments in Japan together with other investors, Thakral said earlier in December.
Thakral’s group chief executive office and executive director, Inderbethal Singh Thakral, said the company expects to benefit from higher rental yields for its Osaka properties amid a rise in demand for commercial spaces.
"The acquisition of the property is in line with the group’s overall strategy to diversify its assets and earnings base in Japan to capitalise on the country’s strong economic fundamentals, which will enhance shareholders’ value," he added.
Shares of Thakral closed up S$0.015 or 3.1 per cent to S$0.495 on Friday.