AEON REIT Investment Corporation (TSE:3292) agreed to acquire Daiei-Ibaraki Process Center from Tokyo Century Corporation (TSE:8439) for ¥6.8 billion on September 12, 2017. The deal amount will be paid entirely upon delivery. In a related deal, AEON REIT Investment Corporation agreed to acquire AEON MALL Shimotsuma and AEON Kireuriwari Shopping Center from Godo Kaisha Double O2 for ¥13.9 billion on September 12, 2017.

The deals will be funded from short term debt financing raised from financial institutions including Mizuho Bank, Ltd, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank, Limited. The short term debt amount is ¥6 billion which will be used to fund a portion of the acquisition of AEON MALL Shimotsuma and AEON Kireuriwari Shopping Center and Daiei-Ibaraki Process Center. The deal will also be funded with issuance of new investment units of AEON REIT Investment for a maximum amount of ¥15.9 billion.

The annual contracted rent for Daiei-Ibaraki Process Center is ¥502 million. The deal is expected to close on October 2, 2017. Japan Real Estate Institute acted as appraisal agency for the deal.