Daiwa House REIT Investment Corporation (TSE:8984) agreed to acquire the trust beneficiary rights of Candeo Hotels Nagasaki Shinchi Chinatown from Daiwa House Industry Co.,Ltd. (TSE:1925) for approximately ¥ 3.1 billion on September 25, 2020. The entire amount will be transferred as the payment mode of settlement. The transaction will be funded from the proceeds from the debt financing and cash reserves.

Trust Beneficiary Rights of Candeo Hotels Nagasaki reported revenues of ¥208.46 million in 2019. The transaction was approved by the Board of Directors of Daiwa House REIT. The purchase agreement is expected to be executed on September 30, 2020 and the anticipated date of acquisition is September 30, 2020.

The impact of the acquisition will be minimal. DAIWA REAL ESTATE APPRAISAL CO., LTD. was the appraiser of the property.