Glonghui, March 13, 丨 NIRAKU (01245.HK) announced that on March 13, 2024, Nexia, a subsidiary of the company (as the buyer), entered into a sales agreement with SKL (as seller) regarding the acquisition of the land located in Toramaru-cho, Koriyama City, Fukushima Prefecture, Japan, at a cost of approximately HK$14.7 million.
On the same day, Nexia (as a customer) also signed a construction contract with SKL (as a contractor) for a construction project to be built on the site. The contract amount was approximately HK$31.9 million.
Once the acquisition is completed, the land will be held by Nexia as an investment property to earn long-term rental income. Once construction permits and approvals have been obtained, construction projects will commence on this land. The Group currently plans to rent 26 residential units in the new buildings to a third party after completion of the construction project to earn rental income.
The land is located in an area designated as a guiding central area in the location optimization plan formulated by Koriyama City, and is expected to become the central hub of Koriyama City in the medium to long term. Group management believes that demand for residential units for other uses such as university students, businessmen and corporate housing will continue to increase in the region. Considering that the construction project has great potential for good rental income after completion, the directors believe that the acquisition and construction projects provide good investment opportunities for the Group.