Toshiba to Sell Ginza Toshiba Building
19 September, 2007
TOKYO -- Toshiba Corporation announced today that the company has decided to sell the Ginza Toshiba Building, which is owned and managed by Toshiba Building Co., Ltd., a subsidiary of Toshiba Corporation. 1. Outline of sale
| (1) Subject of sale: |
Ginza Toshiba Building and its Premises
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Address: |
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2-1, Ginza 5-chome, Chuo-ku, Tokyo |
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Ground area: |
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3,766.8 square meters |
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Total floor area: |
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40,415.33 square meters |
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Structure and scale: |
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Steel-Reinforced Concrete, 9 floor (4 floors underground) |
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Date of construction: |
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October, 1934 |
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| (2) Method of sale, purchaser |
| After establishing a trust for the Ginza Toshiba Building and its Premises, Toshiba will sell trust beneficiary rights to Spade House Limited Liability Company, an entity created by Tokyu Land Corporation. |
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| (3) Sale price and profit from sale (consolidated, forecast) |
Sale price: 161 billion yen
Pre-tax profit from sale: About 130 billion yen (FY2007 second half) |
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| (4) Schedule: |
| After taking necessary procedures, such as setting up the trust, Toshiba plans to sign the transfer agreement in late September and to complete closure by late October, 2007. |
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2. Reasons for sale
Toshiba Group is concerned to maximize the value of its real-estate and the utilization of real estate within the group. In this connection, Toshiba, after considering current property investments, real estate utilization for current and other purposes, and the potential for sale, has decided to sell Ginza Toshiba Building, located in the Ginza district of central Tokyo, to Tokyu Land Corporation, a major real state developer that specializes in management of commercial properties. Toshiba believes that Tokyu Land Corporation can maximize utilization of real estate in Ginza, one of Japan's most prestigious shopping districts. This sale will increase the corporate value of Toshiba through realization of a fair value for the Ginza Toshiba Building and allowing concentration of resources in core businesses.
3. Business outlook
Toshiba's forecasts for fiscal year 2007, ended March 2008, are currently under review and will be published as soon as the review is completed.
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