Saizen REIT

Saizen REIT: To obtain JPY2.0b (S$33.5m) loan from Tokyo Star Bank. The loan is for 5 yrs up to 18 Nov 2016 with a fixed annual interest rate of 3.2% p.a with JPY60m of principal repayment per annum. A one-time fee of 1.5% of the initial loan amt will also be charged. The asset mgr of Saizen REIT will also act as a sponsor for the loan and charge a sponsor fee of 0.175% of the loan amt. The property portfolios of YK Shintoku and GK Chosei which are unencumbered and valued at JPY4.6b ($77.1m) will be pledged as security for the loan. This is the third loan co has obtained from Tokyo Star Bank. The REIT now trades at P/B of 0.4x with historical 12-mth yield of 7.2%