BABCOCK & Brown Japan Property Trust has an interest in an office property in Greater Tokyo for $¥2.85 billion ($A28.6 million).
The property, Yamashitacho, was purchased on a discount of 3.7% based on the independent valuation of ¥2.96 billion.
The initial net operating income yield to purchase price (NOI yield) is 5.93%, with current occupancy at 100%.
Completed in October 1991, the eight level office and retail building has 40 car spaces over two basement floors.
It is located on a major road in
There are currently ten tenants in the building, with the top five tenants making up 73.5% of the occupancy by income. Nine out of the ten leases are standard cancellable leases, with the remaining lease being fixed non-cancellable.
Babcock & Brown Japan Property Management Limited’s managing director Eric Lucas said the property presents an extremely strong yield of 5.93% – even higher than the average for all BJT acquisitions to date.
“The trust’s current gearing ratio of 51.1% is well within our 50%-60% target gearing range. We anticipate that additional debt-funded acquisitions will be made in the short term to take further advantage of this capacity,” he added. Australian Property Journal
