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Kenedix Retail signs ¥32.66B portfolio acquisition deal

Kenedix Retail REIT Corp. signed a March 31 agreement to buy and lease back eight retail assets for ¥32.66 billion.

According to a filing, Sumitomo Mitsui Finance and Leasing Co. Ltd. is selling the Totsuka-Fukaya Shopping Center, Round1 Stadium Ichikawa-Onitaka and Round1 Stadium Hakata-Hanmichibashi. The other sellers are JRP8 GK for the Yumemachi Narashinodai Mall, M&K Tokutei Mokuteki Kaisha for Kurume-Nishi Shopping Center and an undisclosed party for the Prime Square Jiyugaoka. All six deals are expected to be completed April 19.

Meanwhile, the acquisition agreements with GK KRF63 for the Kawamachi Yahagi Mall and JRP9 GK for the Sun Street Hamakita are expected to close May 18 and April 27, respectively.

The assets buy is part of the REIT's strategy of growing and diversifying its portfolio by mainly buying neighborhood, community and other shopping centers. The acquisitions will also boost the company's portfolio to 50 assets worth ¥197.0 billion.

The REIT said separately that it plans to issue 81,250 new investment units in a public offering to help fund the acquisition. It is also allocating 4,000 new units in a secondary offering through overallotment and another 4,000 units through third-party allotment. Pricing is expected to be released sometime between April 11 and April 14, and Kenedix Retail expects proceeds from the offering to reach to up to ¥20.34 billion.

As of March 31, US$1 was equivalent to ¥111.40.