Thakral Corporation Ltd has successfully divested its Yotsubashi Nakano Building in Osaka, Japan, for JPY5.3b, achieving a 13.7% premium over its book value. This strategic move, completed on 30 September, has unlocked approximately S$6.4m in cash flow and generated a one-off attributable profit of S$2 million for the company.
The divestment is part of Thakral’s ongoing strategy to recycle capital and enhance long-term value. The building, located in one of Osaka’s prime commercial districts, was acquired in Q4 2014 for JPY2.17b. Since then, it has delivered a strong equity internal rate of return (IRR) of about 18% per annum. The proceeds from the sale will bolster Thakral’s working capital and support its plans to reinvest in opportunities that drive future growth.
Inderbethal Singh Thakral, CEO and Executive Director of Thakral, stated, “This divestment reflects our disciplined approach to capital recycling and value realisation. The proceeds strengthen our balance sheet and enable us to redeploy capital into opportunities that enhance our earnings profile and long-term growth.”
Despite the sale, Thakral maintains a significant presence in the Osaka office market with five remaining office properties and one hotel. The company has also increased its stake in Thakral Japan Properties Pte Ltd to 56.96% following a share buyback.
Thakral Corporation, listed on the SGX Mainboard, continues to expand its investment portfolio across Australia, Japan, and Singapore, focusing on sectors such as lifestyle resorts, beauty, and technology.
