Lone Star To Buy Failed Japanese REIT

Nikkei newspaper reported today that Lone Star will be purchasing the failed REIT, New City Residence Investment Corp. for around 120 billion yen, of which 112.3 billion yen is for the assumption of the REIT's existing liabilities.

New City Residence filed for bankruptcy protection in October last year, the first of a series of REIT failures to follow in the next 6 months. At the time of the filing, it was reported that New City Residential had around 200 billion yen in assets under management (105 apartment buildings and other properties, mostly in the Tokyo area) with 112.3 billion yen in liabilities.

There were about 10 candidates for the rehabilitation sponsorship and Lone Star won the mandate, while Oak Tree supposedly came in second.