KDX Realty Investment Corporation to Divest Residential Asset in Nagoya

KDX Realty Investment Corporation announced on August 22 that it has signed an agreement to sell the trust beneficiary interest in the rental apartment property Leopalace Flat Shinsakae located in Nagoya’s Naka Ward. The sale price is JPY 4.42 billion, with closing scheduled for August 29.

The 21-story property was completed in November 2004 and offers a gross floor area of approximately 11,590 sqm (approx. 124,700 sq. ft.). Leopalace21 serves as both the master lessee and property manager. The building houses a total of 274 units.

Located a five-minute walk from Shinsakaemachi Station on the Nagoya Municipal Subway Higashiyama Line, the property also provides access to Takaoka Station on the Sakura-dori Line (nine minutes on foot) and Sakae Station (11 minutes on foot).

The asset was originally inherited from the former Kenedix Residential Next Investment Corporation. Since acquisition, it has carried an unrealized loss, and with the property now 20 years old, rising repair and capital expenditure costs were anticipated. As a result, the REIT decided to rotate the asset out of its portfolio.

Key Facts

• Property Name: Leopalace Flat Shinsakae

• Buyer: Not disclosed

• Seller: KDX Realty Investment Corporation.

• Transaction Price: JPY 4.42 billion

• Location: 1-5-31 Shinsakae, Naka-ku, Nagoya, Aichi Prefecture

• Nearest Stations: Shinsakaemachi Station (5-min walk, Higashiyama Line) / Takaoka Station (9-min walk, Sakura-dori Line) / Sakae Station (11-min walk, Higashiyama Line)

• Completion: November 2004

• Number of Floors: 21F

• Units: 274

• Gross Floor Area: 11,589.95 sqm (approx. 124,700 sq. ft.)