First REIT acquires 2 properties in Japan for $25.4m

The acquisitions are DPU accretive to unitholders on a pro forma basis.

First REIT has acquired two properties in Japan for a purchase consideration of JYP2.58b ($25.4m).

OUELH Japan Medical Facilities, a wholly-owned subsidiary of the REIT's trustee Perpetual Asia Limited, entered the silent partnership agreement concerning the acquisition.

According to the REIT's manager, the properties acquired were Komaki Property Medical Rehabilitation Home Bon Séjour Komaki in Aichi Prefecture and the Loyal Residence Ayase in Kanagawa Prefecture.

The purchase considerations for each property are JYP1.45b ($14.3m) and JYP1.13b ($11.1m) respectively..

The total estimated cost of the acquisitions will be JYP2.9b ($28.4m).

Meanwhile, the REIT's manager said the properties have a combined net property yield of 5.20%.

"With this yield, the acquisitions are expected to be distribution per unit (DPU) accretive to holders of units in First REIT on a pro forma basis," the manager added.