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Real Estate Operations of Ryoju Facility & Properties to be Spun Off to Form New Company, with 70% Ownership Stake Held by JR West
-- Initiative Will Strengthen Management of MHI Group's Real Estate Assets--
-- Initiative Will Strengthen Management of MHI Group's Real Estate Assets--
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Tokyo, October 31, 2016 - Mitsubishi Heavy Industries, Ltd. (MHI) has formally decided on a restructuring plan for its Group operations in real estate. The real estate business of Ryoju Facility and Properties Co., Ltd., a wholly-owned subsidiary, will be spun off to form a new company,* and a 70% stake in the new entity will be transferred to West Japan Railway Company (JR West). The transfer price will be ¥97 billion.
JR West views real estate operations as a core business among its various non-transportation operations, driving sustained growth into the future. MHI considers JR West a highly suitable partner for its new asset management program. As part of two companies' collaboration, the new business entity will be placed under JR West's corporate umbrella, a move expected to enable further business reinforcement.
* The real estate operations of Ryoju Facility and Properties, whose operations also include factory & facility management and construction, will be split-off effective January 1, 2017 and will be carried on by Ryoju Properties Co., Ltd., a new company established this July. MHI will hold a 30% stake in the newly splitting entity, with the remaining 70% to be transferred to JR West effective February 1, 2017.
| Corporate name | Ryoju Facility & Properties Co., Ltd. |
|---|---|
| Establishment | January 1, 2016 |
| Head office | 5-34-6, Shiba, Minato-ku, Tokyo |
| Branch offices | Chubu, Kinki, Hiroshima, Nishinihon |
| President | Kenichi Okubo |
| Capital | ¥250 million (100% ownership by Mitsubishi Heavy Industries, Ltd.) |
| Employees | Approx. 2,000 |
| Scope of business | Real estate rental and sales; design, implementation and supervision of civil engineering and construction works; management, operation and maintenance of factories and welfare facilities; etc. |
| Corporate name | Ryoju Properties Co., Ltd. |
|---|---|
| Establishment | July 15, 2016 |
| Head office | 5-34-6, Shiba, Minato-ku, Tokyo |
| President | Kenichi Okubo |
| Capital | ¥50 million (100% ownership by Ryoju Facility & Properties Co., Ltd.) |
| Scope of business | Real estate rental and sales, etc. |
About MHI Group
Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.