— Mitsubishi Motors Corporation and Mitsubishi Corporation today exchanged contracts with a special purpose company, established with capital from a real estate investment fund run by a company affiliated with the Morgan Stanley Securities group, to sell the trust beneficiary rights pertaining to the Shinagawa Mitsubishi Building that includes the MMC Head Office real estate in Shinagawa, Tokyo.
MMC will use the proceeds, realized from converting the Shinagawa Mitsubishi Building and its property into a real estate trust parcel and selling off all trust beneficiary rights thereof, to reduce asset costs and improve its cash flow in line with the company's Business Revitalization Plan.
The sale will bring in around 30 billion yen and is expected to go through at the end of January 2005.
MMC, Mitsubishi Corporation and Mitsubishi Heavy Industries acquired the property in question from the JNR Settlement Corporation in March 1999.
MMC leased its Shinagawa Head Offices (in the Shinagawa Mitsubishi Building) after Mitsubishi Corporation constructed the building.
MMC is selling its holding, which is approximately 35.8% of the total of 20,476.14 square meters of land acquired by the three companies and will re-lease it from a Morgan Stanley Securities group company.
