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Nomura targets ¥20B issuance proceeds, plans ¥29.8B purchase of Japanese assets

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Nomura targets ¥20B issuance proceeds, plans ¥29.8B purchase of Japanese assets

Japanese real estate investment trust Nomura Real Estate Master Fund is targeting net proceeds of up to ¥20.00 billion from its planned issuance of 132,000 new investment units through a public offering and a further 6,670 units through third-party allotment.

The net proceeds will be used to partially fund the company's roughly ¥29.82 billion acquisition of five residential properties, two logistics properties and two office assets in Japan from Nomura Real Estate Development Co. Ltd., according to a company release.

The office properties, in Tokyo, are the PMO Nihonbashi Mitsukoshi-mae and the PMO Shibadaimon, to be acquired for ¥4.31 billion and ¥2.13 billion, respectively, on April 2.

The Landport Hachioji II warehouse in Tokyo will be purchased for ¥9.23 billion, while the Landport Iwatsuki warehouse in Saitama, Japan, carries a ¥6.09 billion price tag. These transactions are set to complete March 1.

On the residential side, Nomura will acquire the PROUD FLAT Sangenjaya II property in Tokyo for ¥2.75 billion; the PROUD FLAT Soto Kanda property in Tokyo for ¥2.28 billion; the PROUD FLAT Noborito property in Kanagawa, Japan, for about ¥1.22 billion; the PROUD FLAT Yoyogi Hachiman property in Tokyo for ¥966 million; and the PROUD FLAT Nakaochiai in Tokyo for ¥844 million.

The residential properties are expected to be purchased April 2.

The price for the public offering, which is expected to generate net proceeds of roughly ¥19.04 billion, will be determined by Feb. 16. The planned issuance through third-party allotment is expected to yield net proceeds of up to ¥962.0 million. The REIT is also planning a secondary offering of up to 6,670 investment units through overallotment.

Separately, the REIT announced it expects total distributions per unit of ¥3,080 for the fiscal period running from March 1 to Aug. 31 and of ¥3,100 for the subsequent fiscal period from Sept. 1, 2018, to Feb. 28, 2019.

As of Jan. 31, US$1 was equivalent to ¥109.27.