Thakral Corp raises S$5.8 million from sale of retail building in Japan

Published Tue, Mar 24, 2020 · 09:44 AM

MAINBOARD-listed Thakral Corporation raised S$5.8 million from the sale of its retail building in Japan, the group said in a regulatory update on Tuesday.

The divestment of the 6,588 square foot Nambanaka Thakral Building in Osaka reaped a net profit of about S$300,000 as at Dec 31, 2019 and a profit of about S$6.1 million from its original acquisition and development cost.

The property, invested through its subsidiary Thakral Japan Properties in March 2018, was redeveloped into a three-storey retail building and leased to a retail chain for 15 years.

The net cash of about S$5.8 million realised from the sale will be used to pay the debt taken up by Thakral Japan Properties to invest in Thakral Umeda Properties at the end of December 2019.

Said Thakral's group chief executive officer and executive director Inderbethal Singh Thakral: "The disposal of the Nambanaka Thakral Building at a cap rate of 3.6 per cent is in line with the group's strategy of taking advantage of market opportunities to unlock value of our investment properties in Japan."

"The value of this property benefited from the location, the quality of the long-term tenant as well as strong outlook for retail rentals - enabling us to reap robust returns from the divestment," he added.