Hulic REIT, a Japanese REIT company investing in offices, retail properties, hotels and other assets, and its management company, have agreed to transfer ownership of two network centers in Tokyo and Nagano to Hulic Co., the parent company of Hulic REIT Management. The estimated transfer price is JPY 5.7 billion ($38.7 million).
According to a filing from Hulic REIT, the transaction involves the Ikebukuro Network Center and the Nagano Network Center, which generate long-term stable income through a fixed-term lease agreement. Ikebukuro Network Center is about 24 years old, and Nagano Network Center is approximately 30 years old, so repair costs are increasing and profitability is expected to decline.
Both properties were acquired in 2014 and account for significant unrealized gains. Hulic REIT’s management company decided to transfer these properties to Hulic Co. to r
AloJapan.com