Kenedix Inc. (4321), a Japanese real estate investment company, plans to raise as much as 40 billion yen ($480 million) in an initial public offering of its residential assets, said two people with knowledge of the deal.
The company may list the real estate investment trust in Tokyo in April, said the people, who declined to be identified because the information is private. The properties to be included in the REIT are mainly located in Tokyo, they said. Kenedix shares rose as much as 14 percent in Tokyo and closed 4.8 percent higher at 16,100 yen.
The IPO would be the first for a Japanese REIT since Industrial & Infrastructure Fund Investment Corp. (3249) sold shares in October 2007. The Tokyo Stock Exchange REIT Index has gained 17 percent since the Bank of Japan (8301) said it added 10 trillion yen to an asset-purchase program on Feb. 14.
The monetary easing will help boost land prices in the six major cities by 10 percent, according to Tokyo-based Yoji Otani, an analyst at Deutsche Bank AG. Takanori Sugiyama, a Kenedix Tokyo-based spokesman, declined to comment on the IPO.
Global Logistic Properties Ltd. (GLP), a unit of the Government of Singapore Investment Corp., is also preparing an initial public offering of its Japanese warehouse assets that may raise about $1 billion, said three people with knowledge of the matter earlier this month.
Japan Real Estate Investment Corp. (8952) and Nippon Building Fund Inc. (8951) are among J-REITs that have announced plans this year for public offerings to fund property acquisitions and pay down debt. Japanese REITs may sell as much as 500 billion yen worth of shares through secondary offerings in 2012, compared with the 223.8 billion yen they sold last year, according to an estimate by Otani.