Kokudo To Sell Tokyo HQ To Recrm In Y27bn Deal

Friday, August 26, 2005
Kokudo To Sell Tokyo HQ To Recrm In Y27bn Deal

TOKYO (Nikkei)--Kokudo Corp., the core firm of the Seibu Railway Co. group, agreed Friday to sell its Tokyo headquarters building to real estate management firm Recrm Research Co for approximately 27 billion yen.

Proceeds from the sale will go toward repayment of a portion of the group's 1.4 trillion yen in interest-bearing liabilities.

Kokudo on July 29 held an auction in which 12 foreign and domestic companies participated. The two highest bidders were given priority rights to negotiate. The contract will be officially signed this coming Wednesday or later.

The headquarters building was completed in 1972 and is five stories high. It has Prince Hotels Inc., Seibu Golf Co., Ohmi Kanko KK and others as tenants. About 350 of the group's employees work there. Kokudo plans to continue using the building after the sale until the end of January 2006.

(The Nihon Keizai Shimbun Saturday morning edition)