ASTRO JAPAN PROPERTY GROUP ASX/Media Release
19 February 2016
Astro Japan Property Group (ASX: AJA) today announced the sale of an office property from its 31 property portfolio - Sun Ace Tokugawa - for ¥1.37 billion (A$16.9 million approx. at A$1=¥81). Financial close of this transaction has been completed. AJA's interest in the building was held through the special purpose, property owning Japanese company, JPT Scarlett Co. Ltd (JPTS).
This is the first asset sold from the portfolio since September 2014. The sale price represents a 4.6% premium to the most recent ¥1.31 billion AJA book value of the asset as at 31 December 2015.
After making repayment of approximately ¥742 million of debt principal required to release this asset under the loan agreement and netting against the sale proceeds the payment of loan and sale-related costs, net proceeds available to AJA are approximately ¥474 million (approx. A$5.9 million).
Following the sale, the outstanding remaining loan amount for JPTS is ¥7.72 billion, which represents a loan-to-value ratio for JPTS of 58%, up from 57.9% as at 31 December 2015, using AJA's book values as at that date.
Mr Eric Lucas, Senior Advisor to AJA, said "With the property having had a material and persistent vacancy, being 26 years old and requiring significant capital expenditure, AJA's Japan asset manager concluded that this was an opportune time to sell, particularly given investor demand for secondary properties like this one that we have not seen for a number of years. The final sale price follows extensive negotiations with several potential purchasers.
Following this sale, AJA will have approximately $50 million equivalent (almost all is held in Yen) in excess cash, which provides the Board with significant flexibility in implementing capital management initiatives, including property investment."
The property interest sold was the Sun Ace Tokugawa property, which is a multi-tenanted office building. The property was originally built in 1990 and is located in Nagoya, Japan's fourth largest city and a major industrial centre located in central Japan.
Eric Lucas John Pettigrew
Senior Advisor Chief Financial Officer
Phone: +61 2 8987 3900 (Australia) Phone: +61 2 8987 3902
+81 3 3238 1671 (Japan)
Astro Japan Property Group is a listed property group which invests in the Japan real estate market. It currently holds interests in a portfolio comprising 30 retail, office and residential properties. Asset management services in Japan are generally undertaken by Spring Investment Co., Ltd.
AJA is a stapled entity comprising Astro Japan Property Trust (ARSN 112 799 854) and Astro Japan Property Group Limited (ABN 25 135 381 663). For further information please visit our website: www.astrojapanproperty.com.
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Astro Japan Property Group issued this content on 19 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 19 February 2016 03:19:53 UTC
Original Document: http://www.astrojapanproperty.com/wp-content/uploads/2016/02/190216-Sale-of-Sun-Ace-190216-Final.pdf
