SINGAPORE: Thakral Corporation’s recently incorporated subsidiary, Thakral Umeda Properties Pte. Ltd. has added the Umeda Pacific Building, an 11-storey office building, to its portfolio of properties in Osaka, Japan.
The building has a gross floor area of 9,179 sqm and net rentable area of 6,359 sqm. The fully-tenanted property is prominently and strategically located along Mido Suji with broad street frontage.
The investment in the Umeda Pacific Building is funded through bank borrowings, the Group’s internal resources as well as co-investors and has been made in the ordinary course of the Group’s business.
Thakral’s Group CEO and Executive Director, Mr. Inderbethal Singh Thakral, said: “Osaka’s real estate market is poised for robust growth as supply of commercial space will remain tight until 2022, when new buildings such as Umeda Twin Towers South become available.
The All-grade vacancy rate of such properties has also fallen to a record low, with many tenants looking to secure space regardless of location or grade. With the rise in demand, we expect to benefit from higher rental yields for our properties in Osaka. The Umeda Pacific Building with its prime location would offer an excellent land bank with recurring income for future redevelopment potential”.
He added, “The acquisition of the property is in line with the Group’s overall strategy to diversify its assets and earnings base in Japan to capitalise on the country’s strong economic fundamentals, which will enhance shareholders’ value.”
CBRE has also forecasted that All-Grade rents will go up by 5.7% over the next year, with increases of 3.5% and 5.8% expected for Grade A and Grade B properties, respectively.