Yamada Green Resources has acquired a three-storey building and the land that it sits on for JPY208 million ($1.7 million). A sale and purchase agreement (SPA) was entered into on Nov 17 between the company’s Japanese wholly-owned subsidiary and the seller.
The building sits on freehold land measuring 250.93 sq m (2700.99 sq ft) at Suehirocho 3-chome, Toyonaka City, Osaka Prefecture. The building itself has a total built-up area of 463.32 sq m and comprises 12 residential units that are all rented out.
All the tenancies will be taken over by Yamada’s subsidiary upon the completion of the acquisition. The rental under the current tenancies comes up to around JPY12.6 million per year.
According to the company, the acquisition is in line with its plans to expand its property rental business in Japan. It is also meant to diversify its property investment and rental segment as well as reduce its concentration risk in China.
Of the total purchase consideration, Yamada Green has paid JPY10 million upon the execution of the SPA. The remaining JPY198 million will be paid upon the completion of the acquisition on or before Dec 26. The amount will be partly funded by bank borrowings and internal resources.
The acquisition is conditional upon Yamada’s subsidiary successfully obtaining the relevant bank borrowings. Should the borrowings not be obtained by Dec 20, the SPA will be determined null and void. Any amount paid to the vendor will be refunded in full and free of interest.
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The acquisition is expected to contribute positively towards Yamada’s financial performance from January 2026. On a pro forma basis, if the acquisition had been completed on June 30, Yamada’s net tangible assets (NTA) would have risen to RMB236.4 million ($43.4 million) from RMB236.3 million, although the company’s NTA per share would’ve remained unchanged at 133.9 RMB cents.
If the acquisition had been effected on July 1, 2024, Yamada would’ve reported a net loss of RMB20.5 million from RMB20.6 million originally. Loss per share would have been down to 11.6 RMB cents, from 11.7 RMB cents.
Shares in Yamada Green closed flat at 10.1 cents.
