I'm just spit-balling here and there is no reason at all the following would necessarily be correct. Do your own research....
What we know about the tenancy situation as last disclosed by AJA:
1. Tenancy reduced to 93% by NRA from 94% 2. The single major factor was a single tenanted office building being vacated
So:
1. Only one tenant 2. Tennant occupied one whole property 2. The property was an Office Building 3. Occupancy reduced to (around??) 93% by NRA 4. AJAs portfolio comprises 20 office buildings as at 30th June 2009 5. Only 3 of these office buildings house single tenants. 6. total NRA area of entire AJA portfolio is 275,877 sqm 7. 1% of total NRA is 2,759 sqm
From the last announcement if overall occupancy dropped by 1% with the single major factor contributing to this being the vacation of a single tenanted office building this means it ought to have been one of the three above. The Forest Kita Aoyama building at 992 sqm may or may not qualify as a single major factor in my opinion if overall NRA vacancy increased by 1% or some 2,759 sqm.
Equally, theoretical vacancy of Kokushi Nihombashi with an NRA of 4,398 sqm is (too) significant but if vacancy dropped by only 2759 sqm then this office building would have been vacated and in turn further leases would have been signed up to offset this NRA occupancy drop.
Asakusa fits the profile in my view. It is (was) a single occupancy office building. With an NRA of 2,047 sqm is close to the mark with an overall reduction in NRA of around 2,759 sqm and would qualify as a single major factor. 2047 is a major proportion of 2759.
Also, in the Japanese yellow pages, the occupant of this building (Bekkoame Internet) is the only one with a completely different address from the above 3 tenants.i.e. they must have moved. I.e. Telecom Staff Co and Japan Securities Agents are still listed as being in those buildings. In the case of Japan Securities Agents their registered address is in the locale but not quite in the above building. I presume this is a government co or a large corporate that occupied more than one building.
Tennant Contact Details from the Japan Yellow Pages:
Bekkoame Internet Mana Bldg. 3-15, Higashi Komagata 1-chome, Sumida-ku, Tokyo Zip: 130-0005 Ph: (03)5610-7900 (+81-3-5610-7900) FAX (03)5610-7901 (+81-3-5610-7901)
Japan Securities Agents, Ltd. 2-4, Nihonbashi Kayaba-cho 1-chome, Chuo-ku, Tokyo ZIP 103-8202 (03)3668-9211 (03)3667-5459
Telecom Staff http://www.telecomstaff.co.jp/english/contact.html TELECOM STAFF Forest Kita Aoyama Bldg. 3-10-3 Kita Aoyama Minato-Ku 107-0061 Tokyo, JAPAN Tel:81-3-5467-2911 Fax:81-3-5467-2910
Finally, and here is the part I do not fully understand. The type of lease for Asakusa is a Fixed Non-cancellable lease. I thought I could find the lease expiry date for this property but it was nowhere in the reports and announcements from what I could gather. If it has been cancelled early and it is non-cancellable then surely there is some form of lump sum exit fee that goes to AJAunless Bekkoame Internet has gone bust which I do not think is the case.
Thoughts?
AJA Price at posting:
$3.45 Sentiment: None Disclosure: Held
