This documentation is the English translation of the Japanese announcement on May 19, 2025.
Additional Documentation for Press Release
"Notice Concerning the Issuance of
New Investment Units and Secondary Offering of
Investment Units"
May 19, 2025
（note）A photo of the fitness gym, work lounge, and entrance of HF MEGURO GYONINZAKA RESIDENCE.
Intentionally Blank
Strengthening asset turnover-type strategy
Facilitating internal growth
Three Enhancement Initiatives
To Improve capital efficiency and maximize unitholder value
Increasing investor returns
1
Prudent and selective investment in properties with strong potential for rent increase as the starting point for "Three Enhancement Initiatives" to maximize unitholder valueObtain opportunities for internal growth through carefully selective investment in properties with large rent gap and those with a strong potential for rent increase
Secure unrealized gains at the time of the acquisition by acquiring properties below their appraisal value. Further aim to
increase unrealized gains by achieving the upside potential of the properties
Including existing properties, aim to continuously facilitate rent increase at the time of contract renewal and tenant replacement while implementing value-adding investments
By securing property acquisition capacity again through the Offering, aim to make flexible and selective investments in
growth assets
Improve earning power by facilitating external growth through selective investment in assets that will provide the
foundation for future internal growth, and by utilizing the comprehensive capabilities of the sponsor group
Plan to realize unrealized gains through continuous property replacement (recorded gain on sales for 15 consecutive fiscal periods) and proactively implement investor returns using internal reserves
Aim for continuous DPU growth by strengthening the "three enhancement initiatives", "Increasing investor returns",
"Facilitating internal growth", and "Strengthening asset turnover-type strategy"
2
Increased DPU for 18 consecutive fiscal periods. Aim for continued DPU growth going forward
Offering highlights
Overview of the Anticipated Acquisitions | Overview of the Anticipated Disposals | ||||||||||||
Number of properties Total (expected) Total appraisal value Average NOI yield acquisition price 8 properties 18.8 bn Yen 22.7 bn Yen 4.5 % Office Residence Asset acquired in Asset acquired in Asset acquired in Asset acquired in Asset acquired in the 47th FP the 47th FP the 47th FP the 47th FP the 47th FP Asset to be Acquired AM Company AM Company AM Company AM Company Sponsor Park East Sapporo HF NISHI-SUGAMO HF NISHI-SUGAMO HF TOBU-NERIMA (quasi-co-ownership: 69%) RESIDENCE RESIDENCE Ⅱ RESIDENCE Asset to be Acquired Asset acquired in Asset to be Acquired the 47th FP Warehousing AM Company Sponsor HF MEGURO GYONINZAKA RESIDENCE KYOMACHIBORI HF RYOGOKU HF OSHIAGE SQUARE RESIDENCE EAST RESIDENCE | KOJIMACHI HF HAM HF SUCHO BUILDING AMAT BUILDING HF HIGASHI- HF HIGASHI-SHINJUKU SHINSAIBASHI RESIDENCE RESIDENCE (Expected) Gain on sales: 4.1 bn yen |
46th FP
Anticipated Acquisitions
Anticipated Disposals
After the Initiative
The Offering
Number of properties | 127 properties |
Total (expected) acquisition price | 237.2 bn yen |
Office / Residence ratio | 51.7 % / 48.3 % |
Average NOI yield / Average NOI yield（after depreciation） | 5.0 % / 4.1 % |
Total Assets LTV / Appraisal- based LTV | 45.8 % / 39.1 % |
NAV per unit | 151,100 yen |
8 properties 4 properties 131 properties
18.8 bn yen
(Average rate relative to appraisal value: 82.6%)
4.8 bn yen
(Total (expected) disposition price: 9.1 bn yen (expected) Disposition price / Average appraisal value: 136.1%)
251.2 bn yen
40.0 % / 60.0 % 59.9 % / 40.1 % 50.7 % / 49.3 %
2.7 % / 2.2 %
4.5 % / 3.8 % (Ratio of NOI to the （expected) disposition price)
4.9 % / 4.0 %
45.5 % / 39.4 %
151,658 yen
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