By Kantaro Komiya
TOKYO (Reuters) – Singapore-based 3D Investment Partners launched a $160 million unsolicited tender offer on Tuesday to boost its stake in Japan’s NTT UD REIT Investment, saying the REIT’s portfolio was undervalued.
The activist fund is seeking to lift its stake to about 13% from 2.2%. Its holding would be for pure investment purposes and it has no plans to control the business through voting rights or executive appointments, according to a filing submitted by its proxy Citco Trustees.
NTT UD REIT Investment units surged nearly 10% to trade at 135,500 yen, more than 3D’s per-unit offer price of 131,890 yen, which is about 7% higher than Monday’s close.
The REIT said 3D’s offer “was commenced unilaterally without any prior notice” and it will express its opinion after carefully examining the offer.
It manages about 60 office and residential buildings in Tokyo and other cities in Japan for telecom conglomerate NTT’s urban development business and the properties are worth about 340 billion yen ($2.2 billion) in total, according to its website.
3D, known for activist engagement with Japanese companies, said Japan’s property prices remain solid despite concerns over higher interest rates and the underperformance of Tokyo-listed REITs.
The fund has pressured beer company Sapporo Holdings and IT firm Fuji Soft to offload real estate assets and increase their corporate value through their core businesses.
($1 = 155.5800 yen)
(Reporting by Kantaro Komiya; Additional reporting by Miho Uranaka; Editing by Edwina Gibbs)
