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MarketScreener Homepage  >  Equities  >  Tokyo  >  UNITED URBAN INVESTMENT CORP.    8960   JP3045540006

UNITED URBAN INVESTMENT CORP. (8960)
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UNITED URBAN INVESTMENT : Notice Concerning Sale of Property (SK Nagoya Building and 6 other properties)

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09/15/2017 | 03:19am EST

For Translation Purposes Only

September 15, 2017

For Immediate Release

United Urban Investment Corporation

Ikuo Yoshida Executive Officer (Securities Code: 8960)

Asset Management Company: Japan REIT Advisors Co., Ltd.

Ikuo Yoshida President and CEO

Inquiries: Kenichi Natsume Chief Financial Officer TEL: +81-3-5402-3680

Notice Concerning Sale of Property (SK Nagoya Building and 6 other properties)

United Urban Investment Corporation ("United Urban") hereby announces that Japan REIT Advisors Co., Ltd. ("JRA"), the asset management company to which United Urban entrusts asset management services, has decided on the sale of property today as set forth below.

  1. Overview of the Sale

    United Urban sold the trust beneficial interests in the property shown below (referred to as individually or collectively, the "Asset to be Sold").

    (million yen (rounded down to unit stated))

    Property Number

    Type of Use (Note 1)

    Property Name

    Location

    Book Value (as of July 31, 2017)

    Anticipated Sale Price (Note 2)

    Difference between

    Book Value and Anticipated Sale Price (Note 3)

    Date of Sale

    (Anticipated)

    B2

    Office Buildings

    SK Nagoya Building

    Nagoya, Aichi

    5,493

    4,970

    523

    Oct. 11,

    2017

    B33

    Nagoya Nishiki City Building

    2,393

    2,480

    86

    D8

    Residencial Properties

    Narashino Residence

    Funabashi, Chiba

    993

    840

    153

    D11

    UUR Court Chiba Soga

    Chiba, Chiba

    577

    600

    22

    D12

    Higashi-kurume Dormitory Shinkan

    Higashikurume, Tokyo

    457

    390

    67

    D13

    Nanzan Court Ichigokan

    Nagoya, Aichi

    918

    950

    31

    D14

    Nanzan Court Nigokan

    377

    430

    52

    Total

    11,211

    10,660

    551

    (Notes)

    1. Type of Use is shown as per United Urban's determination.

    2. Anticipated Sale Price is shown without miscellaneous expenses for the sale, consumption tax, etc. The word is used with the same definition in this release.

    3. "Difference between Book Value and Anticipated Sale Price" shows an indicative amount calculated by using the book value as of July 31, 2017. Therefore, such amount is different from the actual gains or losses. The amount is rounded down to the nearest million yen. The word is used with the same definition in this release.

    4. Reason of the Sale

      United Urban has eagerly worked to improve quality and profitability of its portfolio through replacement of the properties, taking into account the stability of cash flows of each property and other factors in addition to the portfolio composition, profitability, etc.

      United Urban has been considering possibility of sale of the Asset to be Sold under the above policy. United Urban received many offers from the potential buyers. After comprehensively examining terms and conditions of the each offer, situation of the real estate market and the impact of such sale on United Urban's performance, we have decided to sell the Asset to be Sold because the sale of the Asset to be Sold (the "Sale") is thought to be in interest to United Urban in the long perspective. The reason of the sale is being as follows.

      United urban will use the proceeds from the Sale to acquire the properties or to repay the interest bearing debt considering the unitholders' interest of the rent revenues in the future.

      "SK N agoya Building" and "N agoya Nishiki City Buildin g"

      Taking account of (1) increase of the rent revenues in the future cannot be expected because the current rent level is above or equal to the current market in the area, (2) specification would be inferior with lapse of time after the buildings' construction and there is some concern about the maintenance and management cost increase and (3) there is a tendency for nucleus of offices in Nagoya to move to "Meieki" area, United Urban decided it would be appropriate to sell at this time.

      "Narashino Residence" and "Higashi-kurume Dormitory Shinkan"

      TAIHEIYO CEMENT CORPORATION has been the lessee of the Asset to be Sold based on the fixed term lease agreements (the expiry date: October 25, 2019 and February 7, 2018). TAIHEIYO CEMENT CORPORATION will leave on the termination of the agreements. Taking account of the difficulty of the tenant leasing after the leave of TAIHEIYO CEMENT CORPORATION, United Urban decided it would be appropriate to sell at this time.

      "UUR Court Chiba Soga"

      MIRAIT Corporation has been the lessee of the Asset to be Sold based on the fixed term lease agreement. The Asset to be Sold (Acquisition price of ¥620 million) is less than the minimum investment amount for a residence (¥1 billion per property) stipulated in the Asset Management Guideline of JRA and there is some concern about the location as the resident building, United Urban decided it would be appropriate to sell at this time.

      "Nanzan Court Ichigokan" and "Nanzan Court Nigokan"

      The Asset to be Sold has been leased to the current tenant (Undisclosed) based on the fixed term lease agreement. The Asset to be Sold was developed by Marubeni Corporation, for the corporate house and its specifications are slightly different from those of recent typical rental apartments. Also, there is concern the maintenance and management costs will increase with passing of time in the future. Therefore, United Urban decided it would be appropriate to sell at this time.

    5. Details of the Sale
      1. SK Nagoya Building

        1. Name of Asset

        :

        SK Nagoya Building

        2. Type of Asset

        :

        Trust beneficial interest in real estate

        3. Anticipated Sale Price

        :

        ¥ 4,970 million

        4. Book Value

        :

        ¥ 5,493 million (as of July 31, 2017)

        5. Difference between Book Value and Anticipated Sale price

        :

        ¥ 523 million

        6. Appraisal Value

        :

        ¥ 4,970 million (Note)

        7. Date of Agreement

        :

        September 15, 2017

        (conclusion of the sale and purchase agreement of the trust beneficial interst)

        8. Anticipated Date of Sale

        :

        October 11, 2017 (transfer of the trust beneficial interest)

        9. Buyer

        :

        TMK domiciled in Japan (Undisclosed)

        1. Summary of the Sale

          (Note)

          The amount describes the appraisal value as of May 31, 2017 calculated by a real estate appraiser. The same shall apply hereinafter. Please refer to "9. Summaries of Appraisal Report" for details.

        2. Outline of the Asset to be Sold

          Property Name

          SK Nagoya Building

          Type of the Property

          Trust beneficial interest in real estate

          Trustee

          Sumitomo Mitsui Trust Bank, Limited

          Trust Agreement term

          From March 23, 2001 to March 31, 2021

          Location (Note 1)

          Lot number

          1-3051-3061-3071-3081-309 Nishiki,

          Naka-ku, Nagoya, Aichi

          Displayed Address

          1-3-7 Nishiki, Naka-ku, Nagoya, Aichi

          Use of property (Note 1)

          Office, Store

          Area (Note 1)

          Land

          1,361.96m2

          Building

          11,795.38m2

          Structure and Scale (Note 1)

          SRC B1/9F

          Completion Date (Note 1)

          February 1986

          Type of Ownership

          Land

          Proprietary Ownership

          Building

          Compartmentalized Ownership (Percentage of Ownership: 100%)

          Details of Tenant (Note 2)

          Total Number of Tenants

          13

          Total Rental Revenues (yearly)

          ¥352 million

          Security Deposit

          ¥259 million

          Total Leasable Floor Space

          8,708.52 m2

          Total Leased Floor Space

          8,573.57 m2

          Occupancy Ratio

          98.5%

          Other Special Notation

          -

          (Notes)

          1. Each piece of information in the "Location (Lot number)," "Use of property," "Area," "Structure and Scale" and "Completion Date" is described as it appears on the real estate register. The words are used with the same definition in this release. The same shall apply hereinafter.

          2. Figures described in the "Details of Tenant" are as of July 31, 2017. Amounts are rounded down to the nearest digit, and the ratio is rounded to the nearest one decimal price. The words are used with the same definition in this release. Since "Total Rental Revenues (yearly)" is calculated by the contracted monthly rent being amount in effect as of July 31, 2017 (rental revenues and common area charges) multiplied it by 12, this amount may not necessarily be the same as the actual total amount of yearly rental revenues. The words are used with the same definition in this release. The same shall apply hereinafter.

          3. Nagoya Nishiki City Building

            1. Name of Asset

            :

            Nagoya Nishiki City Building

            2. Type of Asset

            :

            Trust beneficial interest in real estate

            3. Anticipated Sale Price

            :

            ¥ 2,480 million

            4. Book Value

            :

            ¥ 2,393 million (as of July 31, 2017)

            5. Difference between Book Value and Anticipated Sale price

            :

            ¥ 86 million

            6. Appraisal Value

            :

            ¥ 2,470 million

            7. Date of Agreement

            :

            September 15, 2017

            (conclusion of the sale and purchase agreement of the trust beneficial interst)

            8. Anticipated Date of Sale

            :

            October 11, 2017 (transfer of the trust beneficial interest)

            9. Buyer

            :

            TMK domiciled in Japan (Undisclosed)

            1. Summary of the Sale

            2. Outline of the Asset to be Sold

              Property Name

              Nagoya Nishiki City Building

              Type of the Property

              Trust beneficial interest in real estate

              Trustee

              Sumitomo Mitsui Trust Bank, Limited

              Trust Agreement term

              From February 21, 2000 to September 30, 2026

              Location

              Lot number

              1-6051-606 Nishiki, Naka-ku, Nagoya, Aichi

              Displayed Address

              1-6-5 Nishiki, Naka-ku, Nagoya, Aichi

              Use of property

              Office, Store, Parking lot

              Area

              Land

              1,342.54m2

              Building

              8,219.53m2

              Structure and Scale

              SRCRCS B1/11F

              Completion Date

              November 1991

              Type of Ownership

              Land

              Proprietary Ownership

              Building

              Proprietary Ownership

              Details of Tenant

              Total Number of Tenants

              30

              Total Rental Revenues (yearly)

              ¥182 million

              Security Deposit

              ¥138 million

              Total Leasable Floor Space

              5,609.97 m2

              Total Leased Floor Space

              5,609.97 m2

              Occupancy Ratio

              100.0%

              Other Special Notation

              -

            3. Narashino Residence

              1. Name of Asset

              :

              Narashino Residence

              2. Type of Asset

              :

              Trust beneficial interest in real estate

              3. Anticipated Sale Price

              :

              ¥ 840 million

              4. Book Value

              :

              ¥ 993 million (as of July 31, 2017)

              5. Difference between Book Value and Anticipated Sale price

              :

              ¥ 153 million

              6. Appraisal Value

              :

              ¥ 1,260 million

              7. Date of Agreement

              :

              September 15, 2017

              (conclusion of the sale and purchase agreement of the trust beneficial interst)

              8. Anticipated Date of Sale

              :

              October 11, 2017 (transfer of the trust beneficial interest)

              9. Buyer

              :

              TMK domiciled in Japan (Undisclosed)

              1. Summary of the Sale

              2. Outline of the Asset to be Sold

                Property Name

                Narashino Residence

                Type of the Property

                Trust beneficial interest in real estate

                Trustee

                Mizuho Trust & Banking Co., Ltd.

                Trust Agreement term

                From December 26, 2000 to October 31, 2024

                Location

                Lot number

                4-447-1 Narashinodai, Funabashi, Chiba

                Displayed Address

                4-83-10 Narashinodai, Funabashi, Chiba

                Use of property

                Apartment

                Area

                Land

                3,948.67m2

                Building

                6,840.86m2

                Structure and Scale

                SRC B1/8F

                Completion Date

                February 1990

                Type of Ownership

                Land

                Proprietary Ownership

                Building

                Proprietary Ownership

                Details of Tenant

                Total Number of Tenants

                1

                Total Rental Revenues (yearly)

                ¥102 million

                Security Deposit

                ¥34 million

                Total Leasable Floor Space

                6,840.86 m2

                Total Leased Floor Space

                6,840.86 m2

                Occupancy Ratio

                100.0%

                Other Special Notation

                -

              3. UUR Court Chiba Soga

                1. Name of Asset

                :

                UUR Court Chiba Soga

                2. Type of Asset

                :

                Trust beneficial interest in real estate

                3. Anticipated Sale Price

                :

                ¥ 600 million

                4. Book Value

                :

                ¥ 577 million (as of July 31, 2017)

                5. Difference between Book Value and Anticipated Sale price

                :

                ¥ 22 million

                6. Appraisal Value

                :

                ¥ 679 million

                7. Date of Agreement

                :

                September 15, 2017

                (conclusion of the sale and purchase agreement of the trust beneficial interst)

                8. Anticipated Date of Sale

                :

                October 11, 2017 (transfer of the trust beneficial interest)

                1. Summary of the Sale

              United Urban Investment Corporation published this content on 15 September 2017 and is solely responsible for the information contained herein.
              Distributed by Public, unedited and unaltered, on 15 September 2017 07:18:02 UTC.

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              EBIT 2019 -
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              Debt 2019 225 B
              Yield 2019 4,45%
              P/E ratio 2019 22,42
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