Reuters - Financials

Lone Star affiliate buys Saizen REIT’s Japan portfolio for $370 mln

Oct 31 An affiliate of U.S. private equity firm Lone Star Funds has agreed to buy Singapore-listed Saizen REIT’s portfolio in Japan for S$ 517.3 million ($ 370 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 REIT consistently traded at a discount to net asset value (NAV) over the last two years. NAV 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 REIT’s adjusted net asset value per unit, Saizen said in a statement on Saturday.

The implied price is nearly 27 percent above Saizen’s last closing price of S$ 0.925 a unit on Thursday before its trading was suspended on Friday.

Credit Suisse and NorthEast Capital Management GK acted as joint financial advisers for the deal.

($ 1 = 1.4005 Singapore dollars) (Reporting by Saeed Azhar; Editing by Miral Fahmy)

Reuters: Financials

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