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Star Asia Investment announced on Monday that it has successfully secured debt financing to support the acquisition of four properties, a move that underscores its commitment to expanding its real estate portfolio. The financing plan includes a combination of short-term and long-term borrowings, with part of the funds being sourced through green loans under its Green Finance Framework.
The financing package comprises two short-term borrowings from Sumitomo Mitsui Banking, valued at 1.2 billion yen and 800 million yen respectively. These loans carry floating interest rates tied to the JPY 1M TIBOR and are scheduled to be borrowed on August 30. These short-term loans will provide the immediate liquidity required for the acquisition process.
In addition to the short-term loans, Star Asia Investment will secure two long-term borrowings, totaling 7.44 billion yen and 8.2 billion yen. These loans will be obtained from a syndicate of lenders, including Sumitomo Mitsui Banking and Mizuho Bank. The long-term borrowings will also feature floating interest rates, but these will be tied to the JPY 3M TIBOR, offering more stability over an extended period.
The total amount secured through these borrowings will be allocated to partially cover the acquisition costs and related expenses for four properties. The anticipated acquisition price for these properties is expected to reach 34.7 billion yen. By incorporating green loans into its financing strategy, Star Asia Investment is not only focusing on growth but also aligning its financial practices with sustainability goals, reflecting a broader trend in the real estate industry. This strategic financial move by Star Asia Investment highlights its proactive approach to managing both growth and sustainability in its real estate ventures.