Activia Properties Inc. Acquires Tamachi East Building
May 24, 2021 – Activia Properties Inc. announced that it has decided to acquire Tamachi East Building for an acquisition price of 6.8 billion yen (US$62 million) excluding expenses for the acquisition, consumption tax, etc.
The REIT plans to finance the acquition through the proceeds from the disposition of their Tokyu Plaza Akasaka property, which has a disposition price of 11.8 billion yen (US$110 million).
“We expect that our portfolio reinforces its strength by flexibly disposing of a retail property comprised mainly of a hotel suffering decreased profitability due to the COVID-19 impact and acquiring an additional Tokyo Office property located in the target investment area to secure the profitability,” Activia said in a statement.
“Further, the remaining proceeds from the Replacement will be used to finance future acquisition, etc. with aim to improve cash distributions. The Replacement will be conducted as a part of the ‘asset recycling model’, enabled by leveraging the support of Tokyu Land Corporation (“TLC”), our sponsor, and we will continue to work for maximization of the unitholder value through various measures with the support from TLC.”
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