Communication Design gets into property with S$31m in acquisitions in Japan

COMMUNICATION Design International (CDI), in a foray into the property business, announced on Thursday that it had agreed to acquire two companies which own three prime properties in the Japanese capital of Tokyo.

It had, on Oct 21, entered into a conditional sales-and-purchase agreement with Low Soon Sim to acquire the entire issued and paid-up share capital of Richwood Asia I Investments Limited and One Room Mansion (ORM) Limited for S$31 million.

Richwood Asia and ORM are the holding companies of the three prime properties:

* Green Forest Kuramae, a freehold 78-unit residential development;

* Green Forest Itabashi, a leasehold 75-unit mixed-use project; and

* Hatchobori Place, a six-storey commercial office development.

CDI said the proposed acquisitions are in line with its strategic plans to expand its core business to include property development activities across different asset classes, property investment and property-related services.

This comes under the group's strategy to enhance its earnings in the longer term, it added.

The proposed acquisition will be funded by proceeds from past placement exercises completed in July 2013 and June 2014, and the proposed placement of 245 million new shares at 12 cents per share announced on Sept 18.