Mainboard-listed Thakral Corp has divested the Nambanaka Thakral Building, a 6,588 sq ft retail building in Osaka retail district. The group has reaped a net profit of about $300,000 as from the latest book value as at Dec 31, 2019, and a profit of about $6.1 million as from original acquisition and development cost.
Thakral Corp invested in the property in March 2018 through subsidiary Thakral Japan Properties, in which the group holds a 50.6% share. It was then redeveloped into a three-storey retail building, which has since been leased out to a retail chain for 15 years.
The net cash of about $5.8 million from the sale will be used to pay debts taken up by Thakral Japan Properties to invest in Thakral Umeda Properties at the end of December 2019.
Thakral Corp’s CEO and executive director, Inderbethal Singh Thakral, says: “The disposal of the Nambanaka Thakral Building at a cap rate of 3.6% is in line with the group’s strategy of taking advantage of market opportunities to unlock value of our investment properties in Japan. The value of this property benefitted from the location, the quality of the long-term tenant as well as strong outlook for retail rentals - enabling us to reap robust returns from the divestment.”
As the group’s largest component in terms of net assets and profitability, the property investment arm has expanded its portfolio into retirement living resorts in Australia under the GemLife brand and properties in Japan and Singapore. Its Japanese investment portfolio now has seven commercial buildings and three business hotels.
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