Industrial & Infrastructure Fund Investment Corp. has agreed to buy 11 logistic properties in Japan for approximately ¥33.83 billion, excluding tax and acquisition costs.
The fund said that its asset manager, Mitsubishi Corp.-UBS Realty Inc. will acquire and lease the portfolio, which provides an annual rent of approximately ¥1.90 billion. The properties are located in Kanagawa, Osaka, Fukuoka, Tokyo, Miyagi, Gunma and Iwate, and were acquired from several sellers, including Komatsu NTC Ltd., Godo Kaisha Industrial Asset Holdings 4 and Sumitomo Mitsui Finance and Leasing Co. Ltd.
Industrial & Infrastructure Fund will finance the deal through cash on hand, loans and an issuance of new units. The respective purchases in the portfolio will be finalized between February and May.
The company will issue 43,538 investment units to the public in Japan and to qualified institutional buyers abroad. A secondary offering of 1,062 new units will be offered to the underwriter of the domestic offering, while another 1,062 investment units will be set aside for third-party allotment. The subscription period for the public and secondary offerings will be set after a yet-to-be-determined pricing date, while the third-party allotment is open from March 2 to March 3.
Based on the company's closing price for regular trading on the Tokyo bourse, as of Dec. 28, 2016, the offering could rake in up to about ¥22.67 billion.
As of Jan. 25, US$1 was equivalent to ¥113.64.