REFILE-INTERVIEW-Nomura RE Asset: wants REIT equity financing
(Corrects dateline to say ... Aug 19 ..., not... Aug 10)
TOKYO, Aug 19 (Reuters) - Japan's Nomura Real Estate Asset Management said the two real estate investment trusts it manages may raise up to 50 billion yen ($528 million) via a new share issue amid signs of a recovery in the domestic REIT market.
The asset management company runs the Nomura Real Estate Office Fund (8959.T), the fourth-largest of Japan's 41 listed REITs, and the Nomura Real Estate Residential Fund (3240.T), which has 139 apartment buildings in its portfolio.
"We want to do it (equity financing) when the capital market recovers a bit more," said Tatsuo Inoue, president and CEO of Nomura Real Estate Asset Management, a wholly owned subsidiary of Nomura Real Estate Holdings Inc (3231.T).
"REITs should grow through equity financing, and we want to get back to that growth cycle as early as possible," Inoue told Reuters in an interview. He added that he expects the capital market to recover by next March.
The amount of the fundraising may depend on market conditions, Inoue said, but added that 30 billion yen for its office REIT and 20 billion yen for the residential REIT would be the maximum in view of the possible dilution impact. Asked about the recovery timing for Japan's lease office and apartment markets, Inoue said both markets would likely to bottom out in the second half of the financial year to the end of March after a sharp deterioration triggered by the global financial crisis.
(Reporting by Mariko Katsumura; Editing by Hugh Lawson)
((mariko.katsumura@thomsonreuters.com; +81-3-6441-1811; Reuters Messaging: mariko.katsumura.reuters.com@reuters.net))
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($1=94.70 Yen) Keywords: NOMURA ESTATE ASSET/ Keywords: NOMURA ESTATE ASSET/
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