ORIX JREIT Announced Asset Acquisition(“ORE Yurakucho, The
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For Immediate Release REIT Issuer: ORIX JREIT Inc. (TSE: 8954) Yutaka Okazoe President and Executive Director Asset Management Company: ORIX Asset Management Corporation Hiroshi Nishio President and CEO Inquiries: Hajime Nakamura General Manager Corporate Planning Department TEL:+81 3 5418 4858 ORIX JREIT Announced Asset Acquisition (“ORE Yurakucho, The Kitahama PLAZA, CROSS GARDEN KAWASAKI and Tecc Land Totsuka (land)”) TOKYO, March 8, 2013 — We, ORIX JREIT Inc. (“OJR”) announced the decision to acquire “ORE Yurakucho Building, The Kitahama PLAZA, CROSS GARDEN KAWASAKI and Tecc Land Totsuka (land)”, as described below. 記 1. Acquisition Summary 1) ORE Yurakucho Asset to be acquired : Real estate trust beneficial interest Acquisition price : ¥9,900,000,000 (excluding national and local consumption taxes, etc.) Scheduled acquisition date : April 1, 2013 Current owner and seller : ORIX Real Estate Corporation Funding method : Proceeds from the issuance of new investment units through public offering (Note 1), proceeds from the sale of the property scheduled for sale (Note 2) and borrowings (scheduled) Payment terms : 100 % on delivery 2)The Kitahama PLAZA Asset to be acquired : Real estate trust beneficial interest Acquisition price : ¥3,900,000,000 (excluding national and local consumption taxes, etc.) Scheduled acquisition date : April 1, 2013 Current owner and seller : Godo Kaisha North Beach Funding method : Proceeds from the issuance of new investment units through public offering (Note 1), proceeds from the sale of the property scheduled for sale (Note 2) and borrowings (scheduled) Payment terms : 100 % on delivery Disclaimer: This document is a press release intended for general public regarding OJR’s acquisition of assets. It has not been prepared for the purpose of soliciting investment. When investing, investors should do so based on their own judgment after being sure to read “prospectus on the issue of new investment units and the secondary offering of investment units through over-allotment” that OJR will prepare as well as any amendments (if any). This is the English translation of original Japanese documents and is provided solely for information purposes. If there are any discrepancies between the translation and the Japanese original, the latter shall prevail. 1/21 3)CROSS GARDEN KAWASAKI Asset to be acquired : Real estate trust beneficial interest Acquisition price : ¥12,950,000,000 (excluding national and local consumption taxes, etc.) Scheduled acquisition date : March 29, 2013 Current owner and seller : ORIX Real Estate Corporation Funding method : Proceeds from the issuance of new investment units through public offering (Note 1), proceeds from the sale of the property scheduled for sale (Note 2) and borrowings (scheduled) Payment terms : 100 % on delivery 4)Tecc Land Totsuka (land) Asset to be acquired : Real estate trust beneficial interest (scheduled) * Acquisition price : ¥6,020,000,000 Scheduled acquisition date : April 1, 2013 Current owner and seller : ORIX Real Estate Corporation Funding method : Proceeds from the issuance of new investment units through public offering (Note 1), proceeds from the sale of the property scheduled for sale (Note 2) and borrowings (scheduled) Payment terms : 100 % on delivery (Note 1) For details, please refer to the press release “ORIX JREIT Announces Issue of New Investment Units and Secondary Offering of Units” announced today. (Note 2) For details, please refer to the press release “ORIX JREIT Announces an Asset Transfer (“Shibaura Island Bloom Tower”)” announced today. (Note 3) As of today, no trust has been established for Tecc Land Totsuka (land). It is planned that a trust will be established at the time it is acquired by OJR. 2. Purpose of the Acquisition In order to realize the stable growth of unitholder value, OJR is advancing an external growth strategy that aims to improve both the portfolio’s profitability and stability by utilizing the diversification of sectors and regions as a diversified REIT, replacement of assets and the ORIX synergy. While continuing investment primarily focused on office properties and properties in the Tokyo Metropolitan Area from the perspective of emphasizing liquidity and medium- to long-term growth, we have invested in prime non-office and other areas properties in order to construct a portfolio that has both the stability and growth potential compatible with the cyclical real estate market and that is also highly profitable. Recently, there have been a number of acquisitions of retail facilities associated with REITs specializing in retail facilities and equity finance (new listing and public offering) of complex-type REITs that incorporate retail facilities. This indicates not only an increase of liquidity of retail facilities but also an increase of competition in property acquisitions. On the other hand, retail facilities are considered by investors that are able to assess risk and that have sufficient operational capacities to be an investment target that provide an opportunity for high revenues (yields) in relation to the substantial risk due to the fact that retail facilities require expertise of operation and management skills and such in view of the particularities of the rental market. Aiming to increase the profitability and stability of the portfolio under such understandings of the environment of the real estate market, we have decided to acquire four retail facilities (ORE Yurakucho, The Kitahama PLAZA, CROSS GARDEN KAWASAKI and Tecc Land Totsuka (land)) that are both profitable and stable. OJR will continue to develop a portfolio that is backed by profitability and stability in order to continue to realize the stable growth of unitholder value in the future. Disclaimer: This document is a press release intended for general public regarding OJR’s acquisition of assets. It has not been prepared for the purpose of soliciting investment. When investing, investors should do so based on their own judgment after being sure to read “prospectus on the issue of new investment units and the secondary offering of investment units through over-allotment” that OJR will prepare as well as any amendments (if any). This is the English translation of original Japanese documents and is provided solely for information purposes. If there are any discrepancies between the translation and the Japanese original, the latter shall prevail. 2/21 3. Summary of Acquisition Property 1)ORE Yurakucho Specified asset category Real estate trust beneficial interest Trustee ORIX Bank Corporation Term of trust agreement April 1, 2013 – August 31,2025 Address 3-5, Yurakucho 2-chome, Chiyoda-ku, Tokyo Registered usage Retail Land: 454.41 ㎡ Registered area Building: 4,286.53 ㎡(total floor area) Steel-framed, reinforced concrete, flat roof, 9 floors with 3 Registered construction underground floor Registered completion date February 28, 2007 Type of ownership Fee simple ownership Previous owner ORIX Real Estate Corporation Acquisition Price ¥ 9,900,000,000 (excluding national and local consumption taxes, etc.) Appraised value ¥10,200,000,000 Appraisal date February 1, 2013 Appraiser DAIWA REAL ESTATE APPRAISAL CO., LTD. Scheduled acquisition date April 1, 2013 Public transit access 1 minutes’ walk from Hibiya Station on Tokyo Metro Line Usage restrictions Commercial district, Fire zone Architects Suruga Corporation, First-Class Architect Office Structural engineers Suruga Corporation, First-Class Architect Office General contractors Suruga Corporation Tokyo Metropolitan Town Creation Center for Disaster Prevention and Building inspection agency Construction Elevator: 3 (max 13 passengers × 2, max 9 passengers × 1) Main facilities and specifications Parking: Parking spaces for 12 vehicles (including 11 at remote places) Earthquake resistance PML5% (based on NKSJ Risk Management, Inc. report )(Note 1) Collateral None ・A parking lot nearby is rented so that the property can meet the Special notes parking obligations prescribed in Tokyo Metropolitan Government’s parking regulations concerning the land, building, etc. ・This property is located in Yurakucho, one of Japan’s foremost commercial and office areas. Directly connected to Hibiya Station on the Tokyo Metro Hibiya Line and being a 2-minute walk from JR Yurakucho Station, access is excellent. Moreover, with the property’s high visibility, the property is expected to attract a good level of customers. Special features of the property ・The tenants are comprised of restaurants (family restaurants, izakaya, etc.) and an amusement facility (karaoke parlor). Many of the restaurants receive not only office workers but are also available throughout day and night to a wide customer base including seniors and female shoppers. All kinds of shops are in this property for all sorts of customer scenarios. Furthermore, synergetic effects among tenants and with nearby retail facilities can be expected. No. of tenants 1 (as of December 31, 2012) (Note 2) Disclaimer: This document is a press release intended for general public regarding OJR’s acquisition of assets. It has not been prepared for the purpose of soliciting investment. When investing, investors should do so based on their own judgment after being sure to read “prospectus on the issue of new investment units and the secondary offering of investment units through over-allotment” that OJR will prepare as well as any amendments (if any). This is the English translation of original Japanese documents and is provided solely for information purposes. If there