Japan Excellent, a Tokyo-listed REIT, plans to sell three properties for a combined JPY 15.6 billion ($98 million) as part of its portfolio recycling strategy.
The REIT will sell its interest in the Daiba Garden City Building in Tokyo to an undisclosed domestic special-purpose company for JPY 10.7 billion ($67 million). The property had a book value of JPY 8.7 billion ($55 million) as of June 30, according to a company filing. Japan Excellent said the building has generated a lower yield than its other properties in central Tokyo and has limited potential for earnings improvement.
Japan Excellent also plans to sell its 70 percent interest in the Sapporo Otemachi Building to Kajima Corp. for JPY 4.8 billion ($30 million). The REIT cited the building’s age — 42 years — as well as anticipated increases in capital expenditures and growing competition from newer office supply in Sapporo as reasons for the sale.
In addition, Saitama City will acquire a portion o
