Tokyo-headquartered NTT Urban Development Corporation will become 100% owners of subsidiary Premier REIT Advisors, having signed an agreement to buy the remaining 30% stake in the company that it did not already own.
Premier REIT Advisors are the managers of the Premier Investment Corporation-REIT (TSE:8956). PIC-REIT holds a portfolio of 59 offices and residential property, over 95% of which is situated in and around Tokyo.
The acquired shares were previously held by Tokyo-listed from Kenedix, Inc. (TSE:4321), one of Japan’s largest independent real estate asset management businesses.
Completion of the deal is expected on 30th October 2020, at which time payment for the transaction will be settled in cash. The amount to be paid was not revealed at the time of the announcement but will be negotiated by the parties taking into consideration a valuation by a third-party appraiser.
NTT Urban Development Corporation is a major Japanese real estate conglomerate involved in the development and leasing of commercial and residential property, property investment management, hotel, hospitality and convention centre management and district heating and cooling. The company owns and manages property across Japan, as well as a number of assets in the UK, USA and Australia.
The company was delisted from the Tokyo stock exchange in January 2019 with all shares being acquired by NTT-SH Corporation, which is itself a subsidiary of Japan’s national telecoms operator, NTT Corporation.