Thakral Corporation AWI will recognise a gain after tax of $1.7 million after divesting its hotel property in Kita-Umeda, Osaka, Japan.
The property was disposed of via the group’s pooled investment vehicle, Thakral Japan Properties. Thakral has an effective interest of 50% in the asset. The property, which is formerly known as R Hotels Inn, is a 120-room business hotel located in the heart of the city and within close proximity to Osaka and Umeda train stations. It was acquired in November 2017.
According to the company, the divestment is in line with its strategy to recycle capital to unlock its long-term property values. The proceeds will allow Thakral to “explore fresh opportunities”.
“The sale of the hotel property came at the right time given the strong tailwinds for the property market in Osaka. The exit is part of our capital recycling efforts to unlock value. We are looking to redeploy the capital into higher-yielding investments and our group’s working capital needs,” says Inderbethal Singh Thakral, Thakral’s group CEO and executive director.
In its statement, the group also revealed that it is in the process of offloading two office buildings in Osaka. They are expected to be put on sale by late September 2023.
Shares in Thakral closed flat at 59 cents on Aug 28.
