Notice of Property Transfer
1. Reason for the transfer
MHI decided to transfer the following property held by the Company to effectively utilize management resources, and strengthen its financial condition.
2. Property for transfer
|Description and Location||Gain on Sale||Current Status|
|Land: 173,797.81m2 |
Takamichi-1, Iwatsuka-cho, Nakamura-ku, Nagoya
|Approx. ¥30 billion||The land is currently in use as the Company's Iwatsuka Plant.|
* While MHI is not disclosing the transfer price and book value of the subject property at the request of the transferee, the transfer price is an appropriate price reflecting the market price through competitive bidding. The gain on sale indicated here is a rough estimate calculated by subtracting the book value of the subject property and miscellaneous fees from the transfer price.
* MHI plans to set up a trust for the subject property, and transfer the trust beneficiary right based on the trust.
3. Overview of the transferee
At the request of the transferee, MHI is not disclosing the name of the transferee. Of note, there are no capital, personnel, or business relationships between MHI and the transferee. The transferee is not an MHI affiliate.
4. Transfer schedule
|Resolution of Board of Directors||November 28, 2019|
|Contract conclusion (planned)||November 29, 2019|
|Transfer date* (planned)||September 30, 2020|
* The transfer date is the date of the transfer of the trust beneficiary right for the subject property.
5. Future forecast
As a result of the subject property transfer, MHI expects to record approximately ¥30 billion as gain on sales of non-current assets in its consolidated statement for the fiscal year ending March 31, 2021.