CapitaMalls Asia now holds 100 per cent stake in three Japanese malls.

It previously held minority interests in the centres, Izumiya Hirakata in Osaka, La Park Mizue in Tokyo and Coop Kobe in Kobe.

The three malls were purchased at a total price of JPY13.2 billion (US$217.4 million) from CapitaMalls Japan Fund, in which it holds 26.29 per cent stake.

“CapitaMalls Japan Fund is divesting its assets as the end of fund life draws near. We decided to acquire the remaining stakes of La Park Mizue, Izumiya Hirakata and Coop Kobe, the fund’s best performing assets,” said Lim Beng Chee, CapitaMalls Asia CEO.

“The combined net property yield of the three malls is about 7.6 per cent, a good spread above the current 10-year Japan government bond yield of about one per cent and J-REITs’ trading yield of about six per cent. With a return on equity (ROE) of over 12 per cent on the acquisition, these malls will also contribute an additional recurring profit after tax and minority interests (PATMI) of more than US$8 million a year to CapitaMalls Asia. The additional stakes in these assets will complement our current portfolio, providing a stable source of income as we continue to grow our presence in the region.”

Izumiya Hirakata located in Hirakata City in Osaka is currently master-leased by general merchandising store Izumiya, a dominant retailer in the Japanese Kansai area.

La Park Mizue, strategically located in Tokyo’s Edogawa ward, is the largest shopping mall in the Mizue suburb, and is currently 99 per cent leased.

Coop Kobe is located in Nishinomiya City and is currently master-leased by Coop Kobe, one of the largest co-operative operators in Japan.

With the three newly acquired malls, CapitaMalls Asia takes the number of its shopping malls in Japan to 10.

CapitaMalls Asia holds interests in and manages a pan-Asian portfolio of 97 shopping malls across 51 cities in the five countries of Singapore, China, Malaysia, Japan and India.

GB