Heiwa Real Estate REIT : Notice Concerning Acquisition of Assets (HF NAKANO-SAKAUE RESIDENCE and 2 Other Properties)
December 23, 2022
For Immediate Release
REIT Issuer
HEIWA REAL ESTATE REIT, Inc.
5-1 Nihonbashi Kabuto-cho,Chuo-ku, Tokyo
Aya Motomura, Executive Director
(Securities Code: 8966)
Asset Management Company
HEIWA REAL ESTATE Asset Management CO., LTD.
Masanori Hirano, Representative Director, President and Chief Executive Officer Inquiries: Junichi Kawamura, Managing Officer and General Manager of Planning & Finance Department TEL. +81-3-3669-8771
Notice Concerning Acquisition of Assets (HF NAKANO-SAKAUE RESIDENCE and 2 Other Properties)
HEIWA REAL ESTATE REIT, Inc. (hereinafter referred to as the “Investment Corporation”) announced today that HEIWA REAL ESTATE Asset Management CO., LTD. (hereinafter referred to as the “Asset Management Company”), the company to which the Investment Corporation entrusts its asset management operations, decided to execute the acquisition of assets (hereinafter referred to as the “Acquisition”). The details are as follows.
Details
1. Overview of the Acquisition
|
Property |
Type of |
Investment |
Investment Area |
Proposed |
Appraisal |
|
|
Property Name |
Acquisition Price |
Value |
||||
|
Number |
Specified Asset |
Category |
(Note 4) |
|||
|
(million yen) (Note 5) |
(million yen) |
|||||
|
HF IMAIKE-MINAMI |
Regional investment |
|||||
|
Re-103 |
RESIDENCE |
Real estate |
Residence |
area |
860 |
942 |
|
(Note 1) |
(Nagoya-City, Aichi) |
|||||
|
HF FUSHIMI |
Regional investment |
|||||
|
Re-104 |
RESIDENCE |
Real estate |
Residence |
area |
610 |
690 |
|
(Note 2) |
(Nagoya-City, Aichi) |
|||||
|
HF NAKANO-SAKAUE |
Primary investment |
|||||
|
Re-105 |
RESIDENCE |
Real estate |
Residence |
area |
1,050 |
1,230 |
|
(Note 3) |
(Nakano-ku, Tokyo) |
|||||
|
Total |
2,520 |
2,862 |
||||
(Note 1) The name of this property is currently “GLEN PARK Imaike-Minami East & WEST”, but it is to be changed to “HF IMAIKE-MINAMI RESIDENCE” on September 1, 2023 after the Investment Corporation has acquired it. Accordingly, its name after the change is recorded.
(Note 2) The name of this property is currently “willDo Fushimi”, but it is to be changed to “HF FUSHIMI RESIDENCE” on September 1, 2023 after the Investment Corporation has acquired it. Accordingly, its name after the change is recorded.
(Note 3) The name of this property is currently “LIONS FORSIA NAKANOSAKAUE”, but it is to be changed to “HF NAKANO-SAKAUE RESIDENCE” on September 1, 2023 after the Investment Corporation has acquired it. Accordingly, its name after the change is recorded.
(Note 4) The Primary Investment Area refers to the 23 Wards of Tokyo, the Secondary Investment Area refers to Tokyo excluding the Primary Investment Area, major urban areas in Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture, and the Regional Investment Area refers to major urban areas in the metropolitan area excluding the Primary Investment Area and the Secondary Investment Area. The
– 1 –
metropolitan area is the urban area and the surrounding municipalities that are socially and economically connected to Tokyo and the central cities of the metropolitan area are the special wards of Tokyo and the government-designated cities. The same will apply below.
(Note 5) “Proposed acquisition price” is the price described in the real estate transaction agreement (consumption tax excluded), and does not include the amounts of settlement for fixed property tax, city planning tax, etc
|
(1) Agreement execution date: |
December 23, 2022 |
|
(2) Scheduled acquisition date: |
January 30, 2023 HF IMAIKE-MINAMI RESIDENCE |
|
January 31, 2023 HF FUSHIMI RESIDENCE |
|
|
March 1, 2023 HF NAKANO-SAKAUE RESIDENCE |
|
|
(3) Seller: |
Undisclosed (Note) |
|
(4) Acquisition financing: |
Cash on hand and borrowings |
|
(5) Payment method: |
Lump-sum payment at time of delivery |
|
(6) Brokerage: |
HF IMAIKE-MINAMI RESIDENCE and HF FUSHIMI RESIDENCE |
|
Applicable |
|
|
HF NAKANO-SAKAUE RESIDENCE |
|
|
Not applicable |
(Note) Undisclosed as consent cannot be obtained from the seller
2. Reason for the Acquisition
The Investment Corporation’s Articles of Incorporation stipulates that the “targets and policies of asset management” is to ensure the steady growth of the investment portfolio and medium- to long-term sustainable profit. Under the Articles of Incorporation, the Investment Corporation seeks to expand its assets through continuous property acquisitions and to improve the quality and profitability of the portfolio by replacing assets. The Asset Management Company has evaluated the acquired property on the following points and decided to acquire the property based on the belief that the acquisition would help realize the policy above and improve unitholder value.
-
HF IMAIKE-MINAMI RESIDENCE
The acquired property is located a 10-minute walk from Imaike Station on the Higashiyama Line and the Sakura- dori Line of Nagoya Municipal Subway. Imaike Station offers excellent access to central Nagoya. Nagoya Station, the largest terminal station in the Chubu area, and Sakae Station, which is situated in one of Nagoya’s notable downtown areas, are 11 minutes and 5 minutes by subway from the station, respectively. In addition, many large supermarkets and restaurants are located around Imaike Station, providing a high-level convenience of life.
The acquired property, which consists of two buildings, namely, the East Building and the West Building, are located adjacent to each other in the same land lot. The East Building includes a total of 55 units in a 26.69 ㎡ 1K unit layout while the West Building offers a total of 16 units in a 29.9 ㎡ 1K unit layout. The 71 units in total are expected to address the needs of single persons. In terms of the facilities provided, the property considers security by installing automatic locks, security cameras, intercom monitors and other equipment. Additionally, the baths and toilets installed separately and the building being equipped with home delivery boxes makes the property sufficiently competitive with neighboring properties.
The NOI yield, which is calculated from the acquisition price and appraisal NOI, and the NOI yield afterdepreciation are 4.9% and 3.8% respectively, and based on the appraisal value and acquisition price, unrealized gain is expected to be 82 million yen.
-
HF FUSHIMI RESIDENCE
The acquired property is located a 4-minute walk from Osu Kannon Station on the Tsurumai Line of Nagoya Municipal Subway and a 9-minute walk from Fushimi Station of the said Tsurumai Line and the Higashiyama Line of Nagoya Municipal Subway. Excellent access to central Nagoya is provided because Nagoya Station is 22 minutes on foot from the acquired property and a 3-minute subway train ride from Fushimi Station. The acquired property is adjacent to the Sakae area as well, offering a life of high convenience. In addition, it is also situated in a nature-rich area close to Shirakawa Park, in which Nagoya City Science Museum and Nagoya City Art Museum are located.
The acquired property includes 36 units in either a 29.89 ㎡ 1K unit layout (9 units) or a 40.13-40.18㎡ 1DK unit layout (27 units). Demand is expected to be mainly from single people and DINK families. In terms of the facilities provided, the property considers security by installing automatic locks, security cameras, intercom monitors and other equipment. Additionally, the baths and toilets installed separately ,the building being equipped with home delivery boxes and underfloor heating makes the property sufficiently competitive with neighboring properties.
The NOI yield, which is calculated from the acquisition price and appraisal NOI, and the NOI yield afterdepreciation are 5.1% and 4.0% respectively, and based on the appraisal value and acquisition price, unrealized gain is expected to be 80 million yen. -
HF NAKANO-SAKAUE RESIDENCE
The acquire property is located a 5-minute walk from Nakano-sakaue Station on the Tokyo Metro Marunouchi Line and the Toei Subway Oedo Line. With Shinjuku Station, Ikebukuro Station, Shibuya Station and Tokyo Station located a train ride of 7 minutes, 14 minutes, 15 minutes and 23 minutes, respectively, from Nakano- sakaue Station, the property offers excellent access to central Tokyo and the main office areas. The area around Nakano-sakaue Station offers many convenient facilities for daily life such as commercial centers, supermarkets and restaurants, as well as high-rise buildings. The property features these favorable location conditions, coupled with transportation convenience.
The acquired property includes 33 units in either a 31.54-38.09㎡ 1R unit layout, 31.54-46.66㎡ 1K unit layout, 41.92-65.13㎡ 1LDK unit layout, 64.60 ㎡ 2DK unit layout, or a 63.94 ㎡ 2LDK unit layout. There are 12 1R units, 15 1K units, 4 1LDK units, 1 2DK unit, and 1 2LDK unit to accommodate all lifestyles, and demand is expected from a wide range of people from singles to families. In terms of the facilities provided, the property considers security by installing automatic locks, security cameras, intercom monitors and other equipment. Additionally, the baths and toilets installed separately ,the building being equipped with home delivery boxes makes the property sufficiently competitive with neighboring properties.
The NOI yield, which is calculated from the acquisition price and appraisal NOI, and the NOI yield afterdepreciation are 4.5% and 3.8% respectively, and based on the appraisal value and acquisition price, unrealized gain is expected to be 180 million yen.
3. Details of the property to be acquired
Re-103 HF IMAIKE-MINAMI RESIDENCE
|
Property number / Property name |
Re-103 HF IMAIKE-MINAMI RESIDENCE |
|||||
|
Type of asset |
Real estate |
|||||
|
(Building address on real estate registry) |
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|
902, 903 Imaikeminami, Chikusa-ku, Nagoya City, Aichi |
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Location (Note 1) |
(Lot Number) |
|||||
|
(East bldg.) 9-10, Imaikeminami, Chikusa-ku, Nagoya City, Aichi |
||||||
|
(West bldg.) 9-20, Imaikeminami, Chikusa-ku, Nagoya City, Aichi |
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|
Form of ownership |
Ownership |
|||||
|
Area (Note 1) |
899.17 ㎡ |
|||||
|
Land |
Use district (Note 2) |
Neighborhood commercial district |
Category I residential district |
|||
|
Building coverage ratio |
80% |
60% |
||||
|
(Note 3) |
||||||
|
Floor area ratio (Note 4) |
300% |
200% |
||||
|
Form of ownership |
Ownership |
|||||
|
Use (Note 1) |
Residence |
|||||
|
Structure/Floors (Note 1) |
(East bldg.) Reinforced concrete flat roof 14 floors above ground |
|||||
|
(West bldg.) Reinforced concrete flat roof 4 floors above ground |
||||||
|
Building |
||||||
|
Total floor space (Note 1) |
(East bldg.) 1,580.08 ㎡ |
|||||
|
(West bldg.) 494.35 ㎡ |
||||||
|
Construction |
(East bldg.) November 8, 2006 |
|||||
|
completion date (Note 1) |
(West bldg.) November 2, 2006 |
|||||
|
Collateral |
None |
|||||
|
Property management company |
To be determined |
|||||
|
Master lease company |
To be determined |
|||||
|
Master lease type |
To be determined |
|||||
|
Tenant details (Note 5) |
||||||
|
Total leasable units |
71 |
|||||
|
Total leased units |
62 |
|||||
|
Total rent income |
48,360 thousand yen |
|||||
|
Leasehold and security |
3,932 thousand yen |
|||||
|
deposits |
||||||
|
Total leased floor space |
1,702.93 ㎡ |
|||||
|
Total leasable floor space |
1,946.35 ㎡ |
|||||
|
Occupancy rates |
87.5% (as of November 30, 2022) |
|||||
|
(Based on Floor Space) |
||||||
|
NOI yield (Note 6) |
4.9% |
|||||
|
Tokyo Bldg.-Tech Center Co., Ltd. |
||||||
|
Survey company |
DAIWA REAL ESTATE APPRAISAL |
|||||
|
CO.,LTD. (Note 7) |
||||||
|
Outline of the engineering report |
Survey date |
November 16, 2022 |
||||
|
Replacement value |
481,000 thousand yen |
|||||
|
Probable maximum loss (PML) |
11.8% |
|||||
|
Long-term repairs |
77,970 thousand yen |
|
(next 15 years) |
||
|
Appraiser |
DAIWA REAL ESTATE APPRAISAL |
|
|
Overview of real estate |
CO.,LTD. |
|
|
appraisal report |
Value date |
November 30, 2022 |
|
Appraisal value |
942,000 thousand yen |
|
|
Other items of special note |
– |
|
(Note 1) “Location (excluding indication of residential address),” “Area,” “Use,” “Structure/Floor” “Total floor space” and “Construction completion date” are as stated in the real estate registry.
(Note 2) “Use district” is the type of use district as listed in Article 8, Paragraph 1, Item 1 of the City Planning Act.
(Note 3) “Building coverage ratio” is the ratio of the building area of the building to the site area as stipulated in Article 53 of the Building Standards Act.
(Note 4) The “Floor area ratio” is the ratio of the total floor space of the building to the site area as stipulated in Article 52 of the Building Standards Act.
(Note 5) Figures in “Tenant details” are as of November 30, 2022. Furthermore, “Total rent income” is the annualized figure (multiplied by
- of the monthly rent (including common expenses but not including fees for the usage of parking, storage rooms and such as well as consumption tax) as of November 30, 2022, based on lease agreements and sub-leasing agreements concluded between the trustee or the Investment Corporation and the master lease company or end tenants, with amounts below a thousand yen round off.
(Note 6) “NOI yield” indicates the NOI yield calculated by using the net operating income (NOI) for the 12 months, which serves as the assumption for the value indicated by the income approach under the direct capitalization method shown in the appraisal report for the property, and is rounded to the first decimal place.
(Note 7) The legal compliance survey and the overview survey of the property were conducted by DAIWA REAL ESTATE APPRAISAL CO.,LTD., while the other surveys were conducted by Tokyo Bldg-Tech Center Co., Ltd.
Re-104 HF FUSHIMI RESIDENCE
|
Property number / Property name |
Re-104 HF FUSHIMI RESIDENCE |
||
|
Type of asset |
Real estate |
||
|
(Building address on real estate registry) |
|||
|
Location (Note 1) |
1-2524,1-2525-2,1-2525-3,1-2525-4, Sakae, Naka-ku, Nagoya City, Aichi |
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|
(Lot Number) |
|||
|
1-25-23, Sakae, Naka-ku, Nagoya City, Aichi |
|||
|
Form of ownership |
Ownership |
||
|
Area (Note 1) |
312.14 ㎡ |
||
|
Land |
Use district (Note 2) |
Commercial district |
|
|
Building coverage ratio |
80% |
||
|
(Note 3) |
|||
|
Floor area ratio (Note 4) |
600% |
||
|
Form of ownership |
Ownership |
||
|
Use (Note 1) |
Residence, parking |
||
|
Structure/Floors (Note 1) |
Reinforced concrete flat roof 10 floors above ground |
||
|
Building |
|||
|
Total floor space (Note 1) |
1,713.50 ㎡ |
||
|
(Note 5) |
|||
|
Construction |
August 10, 2006 |
||
|
completion date (Note 1) |
|||
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Collateral |
None |
||
|
Property management company |
To be determined |
||
|
Master lease company |
To be determined |
||
|
Master lease type |
To be determined |
||
|
Tenant details (Note 6) |
|||
|
Total leasable units |
36 |
||
|
Total leased units |
33 |
||
|
Total rent income |
34,236 thousand yen |
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Disclaimer
HEIWA Real Estate REIT Inc. published this content on 23 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 December 2022 09:13:01 UTC.
Publicnow 2022
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Technical analysis trends HEIWA REAL ESTATE REIT, INC.
| Short Term | Mid-Term | Long Term | |
| Trends | Bearish | Neutral | Bullish |
Income Statement Evolution
| Mean consensus | – |
| Number of Analysts | 0 |
| Last Close Price | 151 200,00 |
| Average target price | |
| Spread / Average Target | – |