Central REIT (TYO:3488) has agreed to acquire two office properties in Nagoya - a 10% stake in Enishio Meieki and the Kamimaezu Kd Building- for a combined 6.73 billion yen.

The purchases, set to close on March 30, will be funded through new borrowings, cash on hand and a third-party allotment to sponsor Meitetsu City Design, according to three separate filings with the Tokyo bourse on Tuesday.

The REIT secured 5.3 billion yen in loans, including a 3.8 billion yen short-term facility and a 1.5 billion yen long-term loan from a syndicate of regional banks.

Separately, the REIT will issue 13,140 new investment units via a third-party allotment to sponsor Meitetsu City Design at 116,027 yen per unit, raising approximately 1.52 billion yen.

The transaction will increase the sponsor's stake to 5.0% and is expected to boost distributions per unit by 6.1% to 3,291 yen for the fiscal period ending August.

The newly acquired assets, appraised at a total of 7.12 billion yen, are expected to expand the REIT's portfolio to 20 properties worth 50.5 billion yen.