Starhill Global Reit to sell its last Japan property for US$39.2 million
The price is a 53.8% premium over the building’s latest valuation of 4 billion yen
Starhill Global Reit sold its last commercial property in Japan for US$39.2 million, a 53.8% premium over the building's recent valuation. The Ebisu Fort, a seven-story building in Tokyo's Ebisu district, generated 1.2% of the Reit's asset value and 0.8% of its net property income. Kemmy Tan, CEO of the manager, stated that the divestment will unlock value, reduce debt, and enhance financial flexibility to focus on new assets.
The property's sale will be used to repay loans and address working capital needs. This move will lower the Reit's gearing from 35.8% to 34.5%. The manager anticipates no significant impact on distribution per unit and net asset value.
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