Yamada Green Resources Announces Strategic Acquisition of Fully Tenanted Residential Property in Osaka, Japan

Yamada Green Resources Limited (“the Company”) has announced a significant move to expand its property investment and rental business in Japan with the acquisition of a fully tenanted residential building and its underlying land in Toyonaka City, Osaka Prefecture. This acquisition is executed via its wholly owned subsidiary, コムレイド株式会社, and marks a strategic diversification from its historical concentration in the People’s Republic of China.

Key Details of the Acquisition

• Property Location: 181 and 185-11, Suehirocho 3-chome, Toyonaka City, Osaka Prefecture
• Land Area: 250.93 m²
• Total Built-up Area: 463.32 m²
• Configuration: 3-storey building with 12 residential units
• Tenure: Freehold
• Occupancy: 100% (Fully tenanted)
• Annual Rental Income: JPY 12.6 million

Transaction Structure and Financial Commitment

• Purchase Consideration: JPY 208.0 million (approx. RMB 9.5 million)
• An initial deposit of JPY 10 million was paid upon signing the Sale and Purchase Agreement (SPA) on 17 November 2025.
• The remaining JPY 198 million is scheduled for payment by the completion date on or before 26 December 2025.
• The acquisition is funded through a mix of bank borrowings and internal resources.

Special Conditions

• The SPA is conditional upon コムレイド株式会社 obtaining the necessary bank borrowings. If financing is not secured by 20 December 2025, the SPA will be void and all payments refunded.
• No valuation was commissioned for the acquisition; the price was determined on an arm’s length commercial basis.

Financial Impact and Shareholder Considerations

• Net Tangible Assets (NTA): The acquisition will have a minimal impact on NTA per share (remains at RMB 133.9 cents).
• Earnings Per Share (EPS): The acquisition will slightly reduce the net loss per share from RMB (11.7) cents to RMB (11.6) cents, reflecting the incremental rental income offset by one-off fees and costs.
• One-off acquisition costs: JPY 8.1 million (taxes, registration, broker commissions, etc.), annual costs of JPY 1.5 million (taxes, insurance, maintenance), and income tax of JPY 0.7 million.

Regulatory and Shareholder Approval

• The vendor is an unrelated third party. No directors or controlling shareholders have any personal interest in the transaction.
• No directors are proposed to be appointed as a result of this acquisition.
• Shareholder approval is not required as the relative figures under Singapore Exchange Listing Rule 1006 do not exceed the 20% threshold; the transaction is considered in the ordinary course of business.

Strategic Implications

• This acquisition, alongside previous purchases in Osaka announced earlier in 2025, strengthens Yamada Green’s property investment footprint in Japan and reduces risk exposure to the Chinese market.
• The company has fully exited its processed food segment; all revenue is now generated from property investment and rental.
• The acquisition is expected to contribute positively to the Group’s financial performance from January 2026 onward.

Potential Price-Sensitive Elements

• Strategic Diversification: The shift away from China and into Japanese real estate could be viewed positively by investors concerned with geopolitical or sectoral risks.
• Stable Rental Income: The property is fully tenanted, providing predictable cash flows.
• Financial Prudence: The acquisition was made on standard commercial terms and is financed using a prudent mix of debt and internal resources.
• Regulatory Compliance: All relevant approvals are in place or pending, and the acquisition does not require shareholder approval, reducing execution risk.

Conclusion

This acquisition represents a strategic step for Yamada Green Resources Limited, reinforcing its position in the Japanese property market and supporting its diversification strategy. Shareholders should note the transaction’s potential to incrementally improve earnings and the stability provided by fully tenanted residential units. While the acquisition is not material enough to require shareholder approval, its alignment with the Group’s core business and potential for positive financial contribution make it newsworthy and potentially influential for future share price performance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with professional advisers before making any investment decisions. The information is based on the company’s public disclosures and subject to change without notice.

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