SINGAPORE, Oct 31 (Reuters) - An affiliate of U.S. private equity firm Lone Star Funds has agreed to buy Singapore-listed Saizen REIT’s portfolio in Japan for S$517.3 million ($370 million).
The deal comes amid a pick-up in consolidation in the real estate investment trust sector as many listed property trusts are trading below their net asset value, particularly in Singapore.
Saizen REIT consistently traded at a discount to net asset value (NAV) over the last two years. NAV refers to an entity’s assets minus the value of its liabilities.
The purchase by Triangle TMK, a Japanese affiliate of Lone Star Real Estate Fund IV and Lone Star Funds, implied a net offer price of S$1.172 per unit, a slight premium to Saizen REIT’s adjusted net asset value per unit, Saizen said in a statement on Saturday.
The implied price is nearly 27 percent above Saizen’s last closing price of S$0.925 a unit on Thursday before its trading was suspended on Friday.
Credit Suisse and NorthEast Capital Management GK acted as joint financial advisers for the deal.
$1 = 1.4005 Singapore dollars Reporting by Saeed Azhar; Editing by Miral Fahmy