“The divestment of Hotel WBF Namba Motomachi enables the group to exit a non-performing asset at a bearable loss and put the capital to more productive use,” says Thakral’s CEO and executive director, Inderbethal Singh Thakral. “We are also looking to sell the remaining two hotels.”
According to Thakral, this is in line with the group’s strategy to maximise return, because with the depreciating Japanese yen, this would provide potential buyers an opportune time to invest.
“We continue to review and fine-tune our portfolio to step up the group’s growth and transformation to drive shareholder value,” Thakral adds.
The funds raised from the divestment will boost the group’s cash flows for reinvesting in niche properties or other opportunities to optimise the value of its overall investment portfolio.
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After completion of this divestment on Aug 31, Thakral’s real estate investment portfolio will have six commercial buildings with a combined area of around 430,000 square feet and two business hotels in Osaka, Japan.
Thakral’s core business comprises a growing real estate investment portfolio in Australia, Japan and Singapore. Its investments in Australia include the development and management of over-50s lifestyle resorts under the GemLife brand, a joint venture with the Puljich family.
The group’s Japanese investment portfolio comprises landmark commercial buildings and business hotels in Osaka, the country’s second largest city.
Shares in Thakral closed flat at 60 cents on Aug 31.
