Advance Residence Investment Corporation to Divest Three Residential Assets in Miyagi and Aichi for JPY 3.15 Billion

On June 25, Advance Residence Investment Corporation announced the sale of three residential assets located in Miyagi and Aichi Prefectures for a total of JPY 3,154 million. The sale is expected to generate a gain of approximately JPY 1,155 million, realizing unrealized profits. The proceeds will be used to fund distributions and repurchase investment units. Closings are scheduled to take place sequentially from early July. Among the assets, the "KC21 Building" in Sendai will be transferred to NSD Co., Ltd. for JPY 1,352 million.

The KC21 Building is an 11-story steel-reinforced concrete property situated just a one-minute walk from Itsutsubashi Station on the Sendai Subway Namboku Line. Completed in March 1997, the building has a gross floor area of approximately 3,184 sqm (approx. 34,270 sq. ft.) and consists of 79 residential units with office spaces on the lower floors. Located along Atago-Kamisugi Street within walking distance of JR Sendai Station, the property captures both residential and workplace demand in a submarket that has seen resilient leasing activity due to urban repopulation trends.

The REIT indicated that this sale is part of its strategy to opportunistically realize capital gains from mid-sized properties in designated major cities and enhance overall portfolio capital efficiency.

Key Facts

• Property Name: KC21 Building

  • Buyer: NSD Co., Ltd.

  • Sale Price: JPY 1,352 million

  • Location: 5-1 Shimizukōji, Wakabayashi-ku, Sendai-shi, Miyagi

  • Nearest Station: 1-min walk to Itsutsubashi Station (Sendai Subway Namboku Line)

  • Completion: March 1997

  • Number of Floors: 11F

  • Units: 79

  • Gross Floor Area: 3,184.19 sqm (approx. 34,270 sq. ft.)

• Property Name: Residia Hirose-dori

  • Buyer: Tagajo Housing Center Co., Ltd.

  • Sale Price: JPY 782 million

  • Location: 5-13 Tatemachi, Aoba-ku, Sendai-shi, Miyagi

  • Nearest Station: 4-min walk to Omachi Nishi-koen Station (Sendai Subway Tozai Line)

  • Completion: February 2010

  • Number of Floors: 10F

  • Units: 63

  • Gross Floor Area: 1,776.35 sqm (approx. 19,120 sq. ft.)

• Property Name: Residia Shirakabe Higashi

  • Buyer: Ascot Corp.

  • Sale Price: JPY 1,020 million

  • Location: 18-7, 1-chome Yoshino, Higashi-ku, Nagoya-shi, Aichi

  • Nearest Station: 8-min walk to Akiha-zaka Station (Meitetsu Seto Line)

  • Completion: May 2005

  • Number of Floors: 8F

  • Units: 33

  • Gross Floor Area: 2,863.16 sqm (approx. 30,820 sq. ft.)