Diversified real estate investment trust United Urban Investment Corp. is selling trust beneficial interests in two retail properties in Japan for a combined price of ¥34.00 billion to two unnamed domestic companies.
Aeon Mall Uki in Kumamoto prefecture will change hands at a price of ¥6.50 billion, lower compared to its ¥9.41 billion book value as at March 31. The property is fully occupied and houses a department store, cinema complex and game hall, among other features.
Meanwhile, the Himonya Shopping Center in Tokyo's Meguro-ku ward will be sold through three installments worth a combined sum of ¥27.50 billion. The 100%-occupied building sits on a 5,249.86-square-meter land plot and contains 27,032.50 square meters of floor area.
Aeon Mall Uki is expected to be sold May 24, while the three installments involved in the sale of the Himonya Shopping Center will be settled May 24, Nov. 1 and Mar. 1, 2019, respectively.
Owing to the asset sales, United Urban expects to record gains of ¥1.3 billion, ¥1.8 billion and ¥2.9 billion in three succeeding six-month fiscal periods ending May 31, Nov. 30 and May 31, 2019, respectively. The company intends to reserve a portion of the gains as "reserve retained as distribution."
As of May 23, US$1 was equivalent to ¥110.03.
