Oaktree: no adverse effect in Re-Plus investment

TOKYO, Sept 25 (Reuters) - U.S. investment firm Oaktree Capital Management said its investment in Re-Plus Residential Investment (8986.T) will not be affected by the failure of property funds manager Re-Plus Inc 8936.T.

"We do not expect the bankruptcy filing by Re-Plus to have an adverse effect on our investment objectives" with the residential REIT or its management company Re-Plus REIT Management, it said. Re-Plus, a sponsor of Re-Plus Residential, filed for protection from creditors on Wednesday with 32.6 billion yen ($308 million) in debt, joining a growing list of Japanese firms knocked by tighter credit and a downturn in the property market.

Shares in Re-Plus Residential fell 9 percent to 170,000 yen on Thursday following the announcement.

Oaktree said last month it would raise its stake in Re-plus Residential to 48 percent by launching the first tender offer for a real estate trust in Japan.

Oaktree, which owns 37.6 percent of Re-plus after completing the purchase of new shares, is aiming to buy an additional 10.79 percent by offering 260,000 yen a share, 35 percent higher than Thursday's close. The tender offer runs from Friday to Oct. 7.

A total of 15 listed Japanese companies have failed so far this year, 11 of which have been in the real estate or construction sectors, according to research firm Tokyo Shoko Research. ($1=105.81 Yen) (Reporting by Junko Fujita; Editing by Michael Watson)