Saizen REIT: Divestment of Jewel Town Suehiro.

Saizen REIT divested another property, Jewel Town Suehiro, which is located in Hakodate. It was built in August 1991 and comprises 30 residential units and 8 car park lots.

The property was sold to an independent private investor for a cash consideration of JPY 146,042,400 (S$2.3 million).  This was at a 2.1% premium to the property's valuation of JPY 143m. Selling at a premium to valuation is good news and supports the argument that there is strengthening demand for Japanese real estate.

Referring to the annual report, as of 30 June 2010, Jewel Town Suehiro was 100% occupied and brought in a total annual rental income of JPY19,327,440. This means a gross yield of 13.2%. A good deal for the buyer.

Following loan repayment from sale proceeds of the Current Divestment, the remaining balance of the YK Shintoku Loan is estimated to be approximately JPY 5.6 billion (S$88.6 million).

Taking into account applicable cash reserves of JPY 0.6 billion (S$9.5 million) maintained by YK Shintoku under the loan agreement, the net outstanding loan of YK Shintoku amounts to approximately JPY 5.0 billion (S$79.1 million). 

Read report here.

Is this the return of the bull market?

On 3 Nov, when I blogged about Macquarie's SiMSCI warrants, a reader, AT, mentioned that "Macquarie runs regular warrant workshops at the SGX, I found the speakers honest and knowledgeable." Seminars are taking place again on 22 and 23 Nov:

Date: 22 Nov 10 (Monday)
Partner: DBS
Location: SGX Auditorium, Level 2, Shenton Way.

Date: 23 Nov 10 (Tuesday)
Partner: Philips Securities
Location: NTUC Auditorium, 1 Marina Boulevard.

Time: 6.30pm to 8.00pm

Light refreshments would be available after each session.

Macquarie's Equity Strategist, Mr. Mark Matthews, will give his view on the market outlook for Singapore and the region in this special presentation. There will also be a short presentation on Singapore warrants.

Admission is FREE. Sign up now as seats are limited.  Register at http://warrants.com.sg/en/home_e.cgi

Related post:
The best way to trade the Singapore Index: SiMSCI warrants.

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