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Daiwa House REIT plans ¥97B of property acquisitions

Daiwa House REIT Investment Corp. will acquire 12 logistics properties, three retail assets and one hotel in Japan for roughly ¥96.98 billion.

Among the 12 logistics assets being purchased, Daiwa House Industry Co. Ltd. owns the DPL Fukuoka Kasuya in Fukuoka; D Project Chibakita, D Project Matsudo II and D Project Tomisato II in Chiba; D Project Osaka Hirabayashi in Osaka; D Project Sendai Izumi II in Miyagi and D Project Fuji in Shizuoka. Daiwa House Industry is also selling the FOLEO Otsu Ichiriyama and FOLEO Hakata retail properties, respectively located in Shiga and Fukuoka.

The properties are expected to change hands between March 27 and April 10.

The acquisitions will be financed with proceeds from the issuance of new investment units, ¥32 billion of debt financing and cash reserves.

For the offering of new units, the real estate investment trust is planning a public offering of 150,900 units in Japan for proceeds of ¥37.64 billion and an international offering of 71,100 units for proceeds of ¥17.73 billion. A further 15,000 units will be sold through overallotment, as well as through third-party allotment, which is slated to generate up to ¥3.74 billion in proceeds.

Separately, the REIT upgraded its forecast for the six-month fiscal period ending Aug. 31. It now expects distributions per unit of ¥4,950, per-unit net income of ¥3,921 and net income of roughly ¥7.56 billion. In the subsequent period ending Feb. 28, 2019, it expects the figures to respectively total ¥5,250, ¥4,221 and ¥8.13 billion.

As of Feb. 27, US$1 was equivalent to ¥107.45.