Hulic Reit Inc.'s manager agreed to acquire three office properties in Tokyo for ¥25.23 billion, through borrowings, proceeds from an issuance of new units and cash on hand.
The approximately 39,855-square-meter Hulic Kamiyacho Building in Minato-ku will be acquired for ¥18.50 billion and the approximately 2,758-square-meter Bancho House in Chiyoda-ku will be purchased for ¥2.75 billion. Both buildings are owned by Hulic Reit affiliate Hulic Co. Ltd.
The approximately 9,869-square-meter Hulic Nihonbashi Honcho 1-Chome Building in Chuo-ku will be sold for about ¥3.98 billion by an undisclosed entity.
The deal for the Kamiyacho building is expected to close Oct. 16, while the other two deals will close Nov. 1.
Hulic Reit will fund the transaction through the issuance of 134,200 investment units in a public offering and 6,800 units in a secondary offering through third-party allotment. The offerings are expected to net proceeds of ¥21.9 billion.
The diversified real estate investment trust also secured an ¥18.5 billion loan from Mizuho Bank Ltd. that is due Aug. 30, 2019, and has a base rate of the one-month Japanese yen Tokyo interbank offered rate plus 0.25% to fund the acquisitions.
As of Oct. 11, US$1 was equivalent to ¥112.21.