Daiwa Securities Group Inc. is increasing its stake in Samty Residential Investment Corp. for ¥6.6 billion, turning the real estate investment trust into a consolidated subsidiary, the Nikkei reported on Aug. 9.
The investment brings Daiwa's stake in Samty Residential to 40% from 36%. As Daiwa already owns a roughly 30% stake in Samty Residential's parent Samty Co., Ltd., Daiwa's effective ownership of the REIT is rising above 50%, making it a consolidated subsidiary.
Daiwa's move is part of its diversification strategy amid ailing securities business growth, the Nikkei says.
The cash injection will allow Samty Residential to acquire 22 rental properties for ¥18.8 billion. With the investment, the REIT's assets are expected to reach ¥100 billion.
As of Aug. 9, US$1 was equivalent to ¥105.45