Astro Japan Property Group (AJA) announced the sale of a Tokyo office asset from its 41 asset portfolio – Shiba Daimon for ¥855 million (A$10.9 million approx. at A$=¥78.5). Financial close of this transaction has been completed.
After repaying the approximately ¥499.4 million of senior debt allocated to this asset under the loan agreement, the payment of sale costs and Japanese withholding tax, net proceeds available to AJA are approximately ¥281 million (approx. A$3.6 million). These funds will be used for capital management purposes.
The sale price represents a 4.8% premium to the ¥816 million purchase price (excluding acquisition costs) of the asset in 2005, and a 0.9% premium to the most recent book value of the asset (as at 31 December 2011) of ¥847 million.
Mr Eric Lucas, Senior Advisor to AJA, said “We are pleased once again to be able to demonstrate to our securityholders our willingness and ability to actively manage our portfolio. With both debt and asset markets having recovered materially since last year’s tragic earthquake, we hope to be able to take advantage of further opportunities where appropriate to sell assets and release capital across the portfolio”.
“Since IPO in 2005, nearly $395 million (¥31 billion, approx.) of AJA assets have been sold at an aggregate 8% premium to book value and 18% premium to acquisition cost. It is noteworthy that almost all these sales – which total about 30% of AJA’s current portfolio by value – have taken place since the onset of the global financial crisis in 2007”.