Mitsui & Co., Ltd. ("Mitsui", Head office: Chiyoda-ku,Tokyo, President and CEO: Tatsuo Yasunaga) announced its wholly owned subsidiary, Mitsui & Co. Real Estate Ltd.("Mitsui Real Estate") has agreed to sell the quasi-co-ownership 5% of trust beneficially right in trust of Shiodome Building to Japan Real Estate Investment Corporation ("JRE"). The handover of the right will be scheduled to take place on March 30th 2017. After the handover, the quasi-co-ownership of trust beneficially right in trust of Shiodome Building by Mitsui Real Estate will shift from 10% to 5%.
As a result of the sale, the gain on sales of fixed assets is included in Mitsui's latest forecast which we announced on February 8th 2017.
1. Property Overview
|Name of property||Shiodome Building|
|Type of asset to be transferred||Trust beneficiary right in trust of real estate
|Location||2-20, Kaigan 1-chome, Minato-ku, Tokyo (address)|
|Lot area||12,054.22 m2 (official register)|
|Size and structure||SRC, 2 basement levels, 24 above-ground floors|
|Total floor area||115,930.83 m2 (official register)|
|Completion date||December, 2007 (9 years old)|
|Sales value||10.45 billion yen|
2. Profile of Mitsui & Co. Real Estate Ltd.
|Company name||Mitsui & Co. Real Estate Ltd.|
|Headquarters||13-1, Nishi-shinbashi 1-chome, Minato-ku, Tokyo|
|Representative||President & CEO Shunsuke Furuya|
|Capital||3 billion yen (as of January, 2017)|
|Business activities||Real-estate buying and selling, leasing, management, brokerage, etc.|
|Total assets (Non-consolidated)||79.8 billion yen (as of March, 2016)|
|Number of employees||52 (as of July, 2016)|
3. Profile of Japan Real Estate Investment Corporation
|Company name||Japan Real Estate Investment Corporation|
|Headquarters||3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo|
|Representative||Executive Director Hiroshi Nakajima|
|Unitholders' capital||458 billion yen (as of September, 2016)|
|Net assets||469 billion yen (as of September, 2016)|
|Total assets||883 billion yen (as of September, 2016)|
|Subject of investment||Office building|
|Major unitholders and
|Japan Trustee Services Bank, Ltd. 18.13%
The Master Trust Bank of Japan, Ltd. 9.86%
Other unitholders 72.01%
|Relationship to Mitsui||Capital
|Mitsui has some units.
(Unit-ratio 0.24%; as of September, 2016)
|JRE and Mitsui Real Estate are quasi-co-owner of Shiodome building.
JRE is investment corporation dedicated to office buildings, and Mitsui has a 10% interest in Japan Real Estate Asset Management Co., Ltd. which carries out asset management on behalf of JRE.
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.