Thakral Corp divests Yotsubashi Nakano Building in Osaka for 5.3 billion yen

Thakral Corporation announced on Tuesday (Sep 30) that it has completed the divestment of its commercial building, Yotsubashi Nakano Building, in Osaka, Japan, for 5.3 billion yen (S$46.2 million).

The asset is located along Yotsubashi-suji – a prime commercial district in Osaka – and comprises nine storeys. It has a land area of 806 square metres (sq m) and a gross floor area of 7,925 sq m, and maintained a 100 per cent occupancy rate as at H1 2025.

The sale has unlocked around S$6.4 million in cash flow and generated a one-off attributable profit of approximately S$2 million, with an effective ownership of about 57 per cent via Thakral Japan Properties (TJP) under which the investment was made.

Inderbethal Singh Thakral, chief executive officer and executive director of Thakral Corp said: “The proceeds (from the divestment will) strengthen our balance sheet and enable us to redeploy capital into opportunities that enhance our earnings profile and long-term growth. We like Japan and continue to look at alternate sectors.”

Since the purchase of the asset in Q4 2014, TJP’s Japanese property investment portfolio has delivered an equity internal rate of return of about 18 per cent per annum.

Thakral Corp, along with other investors in TJP, bought back around 11 per cent of TJP shares from a minority shareholder. This raised the group’s effective stake in TJP to about 57 per cent, up from around 50.6 per cent.

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The company will continue to maintain exposure to the Osaka office market through its remaining five office and one hotel properties.

The counter closed 0.6 per cent or S$0.01 higher at S$1.61 on Tuesday.