This English translation is provided for information purposes only. If any discrepancy is identified between this translation and the Japanese original, the Japanese original shall prevail.
October 2, 2024
REIT Issuer:
Japan Hotel REIT Investment Corporation (TSE code: 8985)
Kaname Masuda, Executive Director
Asset Management Company:
Japan Hotel REIT Advisors Co., Ltd.
Hiroyuki Aoki, President and CEO
Contact:
Makoto Hanamura
Director of the Board, Managing Director
Head of Finance and Planning Division
TEL: +81-3-6422-0530
Notice Concerning Acquisition of New Asset
(Land Adjacent to OKINAWA HARBORVIEW HOTEL)
This is to inform you that Japan Hotel REIT Advisors, Co., Ltd. (hereinafter called "JHRA"), the asset management company of Japan Hotel REIT Investment Corporation (hereinafter called "JHR"), has resolved today to acquire the property below (hereinafter called the "Asset to be Acquired") on behalf of JHR.
1. Summary of the Asset to be Acquired
Name of the Asset to be Acquired | Land adjacent to OKINAWA HARBORVIEW HOTEL |
Type of the Asset to be Acquired | Real estate |
Current use of the Asset to be Acquired | Vacant land |
Anticipated acquisition price (*1) | JPY62,820,000 |
Anticipated acquisition date | October 4, 2024 |
Broker involved | Yes (*2) |
Collateral | Unsecured |
(*1) JHR has concluded a purchase and sale agreement (hereinafter called the "PSA") with the seller to acquire the Asset to be Acquired. The anticipated acquisition price is based on the acquisition price stated in the PSA, excluding consumption tax, local consumption tax and acquisition-related expenses such as brokerage fees.
(*2) The broker does not fall under the category of interested parties as defined in the Act on Investment Trust and Investment Corporation, nor does it qualify as an interested party under the Code for Transactions with Interested Parties stipulated by JHRA.
(*3) For details of the seller, please refer to "4. Summary of the Seller" below.
2. Background and Rationale for the Acquisition
The Asset to be Acquired is a land adjacent to OKINAWA HARBORVIEW HOTEL (hereinafter called the "Hotel"), an asset managed by JHR.
JHR believes that utilizing the Asset to be acquired as a route for material transport and a storage area during the major renovation of the Hotel scheduled for 2025 will reduce the duration and cost of the renovation. Furthermore, in the future, the Asset to be acquired will be leased as parking for the Hotel's employees or as monthly parking spaces, thereby contributing to an increase in the Hotel's asset value.
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3. Details of the Asset to be Acquired
1. Asset summary (*1)
Asset category | Real estate | ||
Anticipated acquisition date | October 4, 2024 | ||
Anticipated acquisition price | JPY62,820 thousand | ||
Appraisal value | JPY65,900 thousand (Date of appraisal: August 31, 2024) | ||
Appraisal institution | Japan Real Estate Institute | ||
2. Summary of real estate (*2) | |||
Intended use of the property | Vacant land | ||
Ownership | Land | Ownership | |
Building | - | ||
Plot No. | 101-12, Izumizaki 2-chome, Naha city, Okinawa | ||
Address | - | ||
Land | Acreage | 138.68 m2 | |
Zoning, etc. | Category 2 residential district | ||
Building-to-land ratio | 60% | ||
Floor area ratio | 200% | ||
Structure and stories | - | ||
Intended use | - | ||
Completion | - | ||
Building | Total floor space | - | |
Designer | - | ||
Constructor | - | ||
Institute that confirmed building | - | ||
Present owner | Undisclosed (*3) | ||
Collateral | None |
3. Special remark Not applicable
(*1) "Asset summary"
"Anticipated acquisition price" is the price stated in the PSA and does not include various expenses required for the acquisition of the real estate (e.g., brokerage fee).
(*2) "Summary of real estate"
"Zoning, etc." ("use district," "special use district" and "fire prevention district or quasi-fire prevention district") are stated based on Article 8, Clause 1-1, Clause 1-2, and Clause 1-5 of City Planning Act.
(*3) "Present owner"
Undisclosed as consent of the present owner has not been obtained.
(*4) All amounts are rounded down to the nearest thousand yen.
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Summary of the Seller
The seller, an individual, has not been disclosed because the approval of the seller has not been obtained. There are no capital, human or business relationships to be specifically noted between JHR or JHRA and the seller. - Status of the Seller
There is no special relationship of interest between JHR or JHRA and the seller. - Settlement Method
JHR plans to settle the payment using its cash on hand.
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7. | Schedule of Settlement Dates | ||||
Resolution for the acquisition | October 2, 2024 | ||||
Conclusion of the PSA | October 2, 2024 | ||||
Settlement and transfer | October 4, 2024 (scheduled) | ||||
8. | Future Prospects | ||||
The impact of this acquisition on the operating forecast for the fiscal year ending December 31, 2024 (January 1, | |||||
2024 to December 31, 2024) is negligible and will remain unchanged. | |||||
9. | Real Estate Appraisal Report Summary | ||||
Since the appraisal value of the Asset to be Acquired is not based on an income approach, please refer to the | |||||
information stated in "3. Details of the Asset to be Acquired" for the overview of the appraisal report summary. |
* Website of Japan Hotel REIT Investment Corporation: https://www.jhrth.co.jp/en/
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