Wednesday, November 18, 2009

Starhill to stop master leases in 7 Japan pties

YTL Pacific Star REIT Management Limited, as manager of Starhill Global REIT, said on Wednesday Starhill Global REIT One TMK has signed a conditional agreement with Mizuho Trust & Banking Co, Ltd and Future Revolution K. K. to terminate the master leases and property management agreements for Starhill Global REIT’s portfolio of seven properties in Japan.

This will mitigate tenant concentration risks with Future Revolution.

Starhill Global REIT has acquired a new special purpose vehicle, Starhill Global ML K.K., to step in as master lessee and assume the position of sub-lessor under the lease agreements with the end-tenants.

It is proposed that Savills Japan K.K. will replace Future Revolution as the local property manager for the seven properties.

Source: Business Times, 18 Nov 2009

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