Activist fund 3D seeks to lift stake in Japanese REIT with unsolicited tender offer

NTT

28/01/2025 04:19

By Kantaro  Komiya
       TOKYO, Jan 28 (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
 8956.T , 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
 9432.T  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
 2501.T  and IT firm Fuji Soft  9749.T  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)
 ((Kantaro.Komiya@thomsonreuters.com; Twitter: @kantarokomiya;))