ACQUISITIONS
Lone Star affiliate buys Saizen Reit’s Japan portfolio for S$517.3m
PUBLISHED : Monday, 02 November, 2015, 6:47pm
UPDATED : Monday, 02 November, 2015, 6:47pm
An affiliate of US private equity firm Lone Star Funds has agreed to buy Singapore-listed Saizen Reit’s portfolio in Japan for S$517.3 million.
The deal comes amid a pick-up in consolidation in the real estate investment trust sector as many listed property trusts are trading below their net asset value, particularly in Singapore.
Saizen consistently traded at a discount to net asset value over the past two years. Net asset value refers to an entity's assets minus the value of its liabilities.
The purchase by Triangle TMK, a Japanese affiliate of Lone Star Real Estate Fund IV and Lone Star Funds, implied a net offer price of S$1.172 per unit, a slight premium to Saizen’s adjusted net asset value per unit, Saizen said in a statement.
The implied price is nearly 27 per cent above Saizen’s last closing price of 92.5 Singaporean cents a unit on Thursday before its trading was suspended on Friday.
Credit Suisse and NorthEast Capital Management GK acted as financial advisers for the deal.
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![Just 100 of the 491 flats on offer were bought at Nan Fung’s “LP6” development on Saturday, even after significant price cuts. Photo: Reuters]( "Just 100 of the 491 flats on offer were bought at Nan Fung’s “LP6” development on Saturday, even after significant price cuts. Photo: Reuters")
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![Singapore’s private sector tends to build ‘small’ homes that are on average three times larger than standards stipulated by Hong Kong’s Urban Renewal Authority]( "Singapore’s private sector tends to build ‘small’ homes that are on average three times larger than standards stipulated by Hong Kong’s Urban Renewal Authority")
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![The Peak site whose sale was withdrawn by the Hong Kong government on Tuesday. Photo: Roy Issa]( "The Peak site whose sale was withdrawn by the Hong Kong government on Tuesday. Photo: Roy Issa")
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![Prospective property buyers at the Octa Tower in Kowloon Bay, queuing up to bid for 491 units of LP6 at Lohas Park in Tseung Kwan O on 13 October, 2018. Photo SCMP / Xiaomei Chen]( "Prospective property buyers at the Octa Tower in Kowloon Bay, queuing up to bid for 491 units of LP6 at Lohas Park in Tseung Kwan O on 13 October, 2018. Photo SCMP / Xiaomei Chen")
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![As home prices soften, mainland developers have become more active in acquiring old buildings]( "As home prices soften, mainland developers have become more active in acquiring old buildings")
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