Croesus Retail Trust acquires two Japanese malls for $74.5m

Mallage Saga (left) and Feeeal Asahikawa.
Mallage Saga (left) and Feeeal Asahikawa. PHOTOS: CROESUS

SINGAPORE - Croesus Retail Asset Management, the trustee-manager of Croesus Retail Trust (CRT), said on Friday it has entered into agreements to acquire two malls in Japan for $74.5 million in total.

The first is Mallage Saga, a large suburban shopping mall. It has a net lettable area of 46,650 sq m and a well-diversified tenant mix of 132 tenants from food & beverage, interior goods, ladies and men's fashion and entertainment businesses.

Located in the capital city of the Saga Prefecture, northwest of Kyushu, the mall began operations in 2003.

The second mall is Feeeal Asahikawa, a large scale shopping centre located in Asahikawa city in Hokkaido.

The property has a net lettable area of 19,763 sq m with 62 retail tenants comprising a mix of food and groceries, fashion and accessories, education services and financial/insurance sectors, and two office tenants.

Upon completion of the acquisitions, CRT's total portfolio value, comprising its existing assets and the two new properties, would grow by 6.7 per cent to 106,540 million yen (S$134.4 billion), representing a total net lettable area of 425,530 sq m across 11 high-quality retail assets geographically diversified across Japan.

The announcement came as CRT announced a 21.2 per cent year-on-year growth in net property income to 1,408.6 million yen (S$17.8 billion) in the third quarter ended March 31.

This resulted in a distribution per unit of 1.86 cents for the third quarter, up 19.2 per cent from the same period a year ago.