SIA REIT to Raise Up to 39.2 Billion Yen in Japan Share Sale

SIA REIT Inc., a Japanese real estate investment trust, plans to raise as much as 39.2 billion yen ($393 million) in the country’s third-biggest initial share sale by REITs this year.

The REIT will issue as much as 78,435 shares in the sale, according to the document filed through the nation’s finance ministry. The sale includes a possible offering of 1.87 billion yen to the organizers as a so-called over-allotment. The proceeds will be used to acquire properties and repay debt, the Tokyo-based REIT said.

SIA is set to be the fifth REIT this year to sell shares to the public for the first time, joining Comforia Residential REIT Inc. (3282), Nippon Prologis REIT Inc. (3283), Nomura Real Estate Master Fund Inc. (3285) and Hoshino Resorts REIT Inc. (3287) SIA has developed and operated properties including offices, hotels and distribution centers in Japan, according to the company’s website.

The price will be decided on Sept. 30 and the REIT will debut on the Tokyo Stock Exchange on Oct. 9, SIA said. The REIT will be managed by Simplex REIT Partners, an investment management company. SMBC Nikko Securities Inc. and Daiwa Securities Group Inc. will handle the sale, it said.

GLP J-REIT (3281), a logistics trust, yesterday said it plans to raise as much as 23 billion yen in an additional share sale in Tokyo to acquire properties and to repay debt.

To contact the reporters on this story: Kathleen Chu in Tokyo at kchu2@bloomberg.net; Taku Kato in Tokyo at tkato6@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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