In a filing with Bursa Malaysia, YTL REIT said its wholly-owned subsidiary, Starhill REIT Niseko G.K. (Starhill Niseko) had entered into a conditional sale and purchase agreement with Niseko Village K.K, an indirect wholly-owned subsidiary of YTL Corp Bhd for the acquisition of the property in Hokkaido, Japan.
YTL REIT said the property comprises freehold lands in Aza-Higashiyama, Niseko-cho, Abuta-gun, measuring approximately 10,728 sq m, and hotel buildings known as The Green Leaf Niseko Village.
Upon completion of the proposed acquisition, Starhill will lease the property to Niseko Village for 30 years with an option granted to renew for a further term of 30 years.
“The lease arrangement will provide YTL REIT with a steady and secure income stream and is expected to contribute positively to the trust’s future distributable income and distribution per unit,” YTL REIT said.
It said the proposed acquisition was line with the investment objective to continuously pursue the strategy to acquire and invest in high quality hospitality properties in Malaysia and internationally with a view to provide long-term and sustainable income distribution to unitholders and achieve long-term growth in the net asset value per unit.
YTL REIT said the property was located in Niseko-cho and the resort area attracts numerous international skiers. It added that the total number of nights stayed in Niseko-cho has dramatically increased over the past 14 years.
“Continued growth in international visitors will have a positive impact on the occupancy rate of the Property, because, at present, approximately 70% (winter) and 50%
(summer) of the Property’s visitors come from overseas.
“As more and more international tourists are expected to visit Niseko-cho, large developments are accordingly planned in the near future. Therefore, it is expected that the subject area will maintain its reputation as a premiere resort area in Japan,” YTL REIT said.