Japanese real estate investment trust United Urban Investment Corp. acquired the Chatle Otemachi S·N residential asset in the Kitakyushu city in Japan's Fukuoka Prefecture for nearly ¥3.40 billion, marking an estimated net initial yield of 5.4%.

The property comprises two 15-floor buildings — S and N — with a total leasable floor area of 12,040.28 square meters and an occupancy rate of 97.7%. The asset was valued at ¥3.49 billion as of June 1, according to a release.

To fund the purchase and related costs, the REIT signed an agreement to borrow ¥3.80 billion at a fixed interest rate of 0.465% from MUFG Bank. Ltd. The term loan has a scheduled drawdown date of July 3, with principal repayment slated for Sept. 21, 2027.

As of July 2, US$1 was equivalent to ¥110.78.