Highlights

SGX Stocks and Warrants

Author: kimeng   |   Latest post: Tue, 22 Aug 2017, 10:08 AM

 

Starhill Global REIT: Divestment of Asset in Tokyo, Japan

Author:   |    Publish date:


Starhill Global REIT (SGREIT) recently announced that it has divested its entire beneficial interests in the Harajuku Secondo Property for a cash consideration of JPY410.2m, or approximately S$5.1m. This transaction comes in at an attractive premium of 22.4% to the property’s latest independent valuation of JPY335.0m, and translates into an exit yield of 2.5%, based on its FY16 NPI figure.

The property is a 3-storey building for retail use which is located in the Harajuku district in Tokyo, Japan. It formed only 0.1% of SGREIT’s portfolio by asset value.

SGREIT’s decision to divest does not come as a surprise to us, as management had been seeking opportunities to pare down its noncore assets. As a recap, SGREIT had divested the Roppongi Terzo property, also located in Tokyo, Japan, in Jan last year.

Given the relatively small size of this divestment, we keep our BUY rating and S$0.82 fair value estimate on SGREIT.

Source: OCBC Research - 17 May 2017

Share this

Related Stocks

Chart Stock Name Last Change Volume 
StarhillGbl Reit 0.745 -0.005 (0.67%) 1,878,000 

  Be the first to like this.
 


 

152  87  202  658 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 Noble 0.210.00 
 DISA 0.014+0.001 
 LifeBrandz 0.0040.00 
 Rowsley 0.104+0.001 
 Moya Hldg Asia 0.111+0.004 
 Charisma Energy 0.0050.00 
 Golden Agri-Res 0.375+0.015 
 Addvalue Tech 0.0430.00 
 Spackman 0.111+0.004 
 AA 0.044+0.001 
Partners & Brokers