Croesus Retail Trust buys Hiroshima mall for over $40m

It is expected to provide stable income.

According to KGI Fraser, Croesus Retail Trust (CRT) is acquiring Fuji Grand Natalie, a suburban retail property in Hiroshima Prefecture.

It added, "The NPI yield of the acquisition is 6.3 percent using the purchase consideration of JPY3.3b. The total acquisition cost is JPY3.63b (S$44.3m), funded by equity using part of the net proceeds from the private placement raised earlier."

In its report KGI Fraser cited steady income stream as the property "is master-leased to Fuji Co Ltd/Ehime (8278 JP) till end-March 2024 on a fixed monthly rent basis."

RHB meanwhile described Fuji Grand Natalie as an income-producing large scale suburban retail mall in Hatsukaichi City with 100 percent level of occupancy.

The acquisition, according to RHB, will be accretive to CRT's shareholders.