AEON REIT Investment Corporation (TSE:3292) entered into an agreement to acquire AEON MALL Chiba-Newtown and Daiei-Kawasaki Process Center from Century Tokyo Leasing Corporation (TSE:8439) for ¥26.5 billion on January 18, 2016. Under the terms, AEON REIT Investment will pay ¥12.2 billion for AEON MALL Chiba-Newtown and ¥14.3 billion for Daiei-Kawasaki Process Center, on deliver. In related deals, AEON REIT Investment Corporation entered into agreements to acquire AEON MALL Yamatokoriyama, AEON MALL Kofu Showa and AEON Chigasaki-Chuo Shopping Center for approximately ¥28.9 billion on January 18, 2016.

The acquisitions will be financed from net proceeds from the issuance of new investment units, debt financing and cash on hand. Debt financing of approximately ¥25.5 billion is provided by a syndicate of lenders arranged by Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank, Limited. Approximately ¥28.4 billion will be raised in equity financing through domestic primary offering, international offering and issuance of new investment units through the third-party allotment.

AEON MALL Chiba-Newtown reported ¥807 million of revenues and Daiei-Kawasaki Process Center reported ¥883 million of revenues for the year ending December 31, 2015. AEON MALL Chiba-Newtown includes the shopping mall and cinema portions of the shopping center but does not include the Enjoy Life building or AEON store building portions. AEON REIT Investment will enter into a master lease agreement for AEON MALL Chiba-Newtown with ÆON Mall Co., Ltd. AEON REIT Investment Corporation expects to close the acquisition of AEON MALL Chiba-Newtown on March 29, 2016 and of Daiei-Kawasaki Process Center on February 15, 2016.

AEON REIT completed the acquisition of Daiei-Kawasaki Process Center on February 15, 2016. Japan Real Estate Institute acted as appraiser for AEON MALL Yamatokoriyama and AEON MALL Kofu Showa properties.