Proceeds will be used to pay off Yen loans.
Starhill Global REIT has divested Roppongi Terzo, a prime retail property located in Tokyo, for $29.9m.
This is above the property’s last valuation of $29.2m, and the sale consideration translates to a yield of 4.4%.
After the transaction, the REIT’s portfolio in Japan will be reduced to four properties.
The net sale proceeds would be used to repay the Yen loans and/or for working capital purposes. SGREIT’s gearing is expected to decrease from 35.7%3 to 35.1% assuming that the net sales proceeds are substantially used to repay the Yen loans