Japan Real Estate Investment Corporation [8952.T]
TOKYO, May 15 (Pulse News Wire) – Japan Real Estate Investment Corporation (8952.T) announced today that it has decided to sell its domestic real estate asset, the Daitsu Life Niigata Building, with an expected transaction price of ¥1.08 billion. The sale is set to close on May 20, 2026, with the proceeds anticipated to be used for debt repayment and future acquisitions.
The building, located in Niigata City, was appraised at ¥1.08 billion by Nippon Gumi Koyu Co., Ltd. as of April 1, 2026. It currently houses eight tenants generating rental income of ¥165.194 million annually. The property, built in October 1998, faces challenges due to limited recovery in the local office market and tenant demand shifting towards areas near Niigata Station. Additionally, ongoing maintenance costs pose risks to future profitability.
The buyer, Kagoya Asset Management Co., Ltd., will take possession of the building. The company, established on December 22, 2005, has a capital of ¥100 million and total assets of ¥1.08 billion as of December 31, 2025. There are no significant relationships between the investment corporation and the buyer. Looking ahead, the company expects the sale to enhance portfolio competitiveness and improve investor value. Detailed forecasts for the fiscal years ending September 30, 2026, and March 31, 2027, will be available in the upcoming quarterly earnings release.
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