(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
1-2-1, Kanda Nishiki-cho,Chiyoda-ku, Tokyo
Representative: Nobuaki Seki, Executive Director
AEON Reit Management Co., Ltd.
Nobuaki Seki, Representative Director and
Tomohiro Itosaka, Managing Director in charge of
Notice Concerning Additional Conclusion of Floor-Space Expansion Development
Agreement at AEON MALL Ota
AEON REIT Investment Corporation (we or the "Investment Corporation") hereby announces as follows, that AEON Reit Management Co., Ltd. (the "Asset Manager") to which the Investment Corporation entrusts the management of its assets, resolved and concluded the Floor-Space Expansion Development Agreement for AEON MALL Ota (the "Property) owned by the Investment Corporation based on the discussion about renovation through floor-space expansion (the "Expansion") with AEON Mall Co., Ltd., a lessee of the Property with which we previously entered into the Pipeline Support Agreement and the Shopping Center Management Agreement (hereinafter collectively, the "Support Agreements").
1. Overview of the Floor-Space Expansion Development Agreement:
construction of the Extended Building .
However, based on additional trust of the Extended Building, the Extended Building is added to an object of master lease agreement of the Existing Building between the Trustee and AEON Mall Co., Ltd., and the Agreement Establishing Fixed Term Land Lease Right for Business Purposes will may not be concluded or will be suspended as of acquisition of the Property, provided that the Extended Building is acquired exercising the Preferential Negotiation Rights as mentioned above.
< Overview of the Preferential Negotiation Rights >
The rights to preferentially negotiate regarding receipt
of status, rights and duties under the agreement of
construction of the Extended Building
Period of validity of the Floor-Space Expansion
As of today this does not constitute a decision by the Investment Corporation to receive status, rights and duties under the agreement of construction of the Extended Building. The rights shall not be deemed a guarantee that we assure to acquire the property, nor shall we be obliged to receive status, rights and duties under the agreement of construction of the Extended Building as this is a right the Investment Corporation obtained based on the Floor-Space Expansion Development Agreement.
For acquiring the property, we will get required due diligence done and make a decision based on the internal rule which is the "Rule for Interested-Party Transactions" of AEON Reit Management Co., Ltd. (the "Asset Manager").
However, the Investment Corporation and the Asset Manager will pay no consideration to the entities with which the aforesaid agreement is made for obtaining the Preferential Negotiation Rights.
Through the Support Agreements with AEON Group, the Investment Corporation and the Asset Manager will establish a strong support structure of AEON Group to us. We will be able to fully utilize the know-how and integrated capabilities in the development and operation of the retail and related properties that AEON Group have cultivated, and we will be aiming to expand our portfolio over the medium to long term.
The renovation through the Expansion will be conducted for the purpose of enhancing profit of the Property boasting a lot area of approx.146,000 ㎡ , ensuring stable revenue over the medium to long term and realizing improvement of asset value through the Expansion, by cooperating with AEON Mall Co,. Ltd. and developing it as a shopping center which can meet every need from the local customers.
The aforesaid does not constitute a decision by the Investment Corporation to acquire the Extended Building. Furthermore, there is no impact to the forecasts of performance and distributions (estimated figures) of the Investment Corporation.
The Investment Corporation will make a prompt announcement if any matters to be disclosed related to the development arise.
*The Investment Corporation's website: http://www.aeon-jreit.co.jp/en/
・ Architectural rendering of AEON MALL Ota ・ New part of the Extended Building
Architectural rendering of AEON MALL Ota
The architectural rendering shows an image of a planned-to-be-completed-building, thus may differ from the actual building.
New part of the Extended Building
AEON REIT Investment Corporation published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 05:13:06 UTC.