Advance Residence Investment (TYO:3269) has agreed to acquire RESIDIA Musashi-koyama, a four-storey apartment building in Shinagawa-ku, Tokyo, for an acquisition price of 690 million yen.
The purchase price represents a 95.7% ratio to the appraisal value of 721 million as of April 1, according to a Tokyo bourse filing on Thursday.
The property features 19 leasable units with an occupancy rate of 95% based on floor area and a building age of 7.3 years.
The acquisition will be funded through a combination of borrowings and cash on hand, with settlement expected on June 30, and the asset will be held as real estate following termination of the trust beneficiary interest on the same day.
Itochu Urban Community, which falls under the category of an interested party under the asset manager's internal rules, is scheduled to serve as master lessee and property management company, while the seller is a domestic special purpose company whose further details cannot be disclosed due to a lack of consent.