[Translation]
February 12, 2015
Company name | Sapporo Holdings Limited |
Representative | Tsutomu Kamijo President and Representative Director |
Securities code | 2501 |
Listed on | Tokyo Stock Exchange Sapporo Securities Exchange |
Inquiries | Toshihiko Umezato Director, Corporate Communications Department |
Tel.: +81-3-5423-7407 |
Sapporo Holdings Limited (the "Company") hereby announces that the Company at its Board of Directors' meeting held today resolved to transfer the trust beneficiary rights of assets held by Sapporo Real Estate Co., Ltd. (the "Rights"), as described below.
As a result of the transfer of the Rights, the Company will post extraordinary income.
1. Reason for the Transfer
The SAPPORO Group (the "Group") encourages each operating company of the Group to implement various growth strategies, with the aim to achieve sustainable growth. As part of such initiatives, we have addressed recombination of the portfolio to improve the efficiency of the assets held by Sapporo Real Estate, and to establish a foundation of medium- to long-term stable revenues.
We also took into account such aspects as current real estate market trends and the prospect of future profitability. After careful consideration of these issues, we have decided to conduct the transfer of the Rights.
2. Overview of the Subsidiary
(1) Company name | Sapporo Real Estate Co., Ltd. |
(2) Location | 20-3, Ebisu 4-chome, Shibuya-ku, Tokyo, Japan |
(3) Position and name of representative | Toshiyuki Ikoma, President and Representative Director |
(4) Outline of businesses | Management of rental real estate, development of real estate and hotel management, etc. |
(5) Capital | ¥2.08 billion |
3. Description of the Assets to be Transferred
Description and location of the assets | Transfer price | Book value | Gains from the transfer | Current use |
Shibuya Sakuragaoka Square (Trust beneficiary rights) 31-15 Sakuragaoka-cho, Shibuya-ku, Tokyo Land: 1,200 m2* Building: 8,656 m2* (Total floor space) | ¥17.0 billion | ¥9.6 billion | ¥7.3 billion | Rental real estate |
Note: The above amounts of the book value and the gains from the transfer are the values as of
December 31, 2014. Amounts less than ¥0.1 billion were truncated.
*The above square meterage of the land and the building is based on the amounts stated in the registry of land.
4. Outline of the Entity to Which the Rights Are to be Transferred
The Rights will be transferred to a domestic special-purpose company (SPC), the name of which shall be kept undisclosed based on the agreement between Sapporo Real Estate and the SPC.
There is no capital, human or transactional relationships, or special matters, that need to be mentioned as related parties between the SPC and the Company or Sapporo Real Estate, or other affiliated companies of the Company.
5. Schedule for the Transfer
(1) Resolution by the Board of Directors | February 12, 2015 |
(2) Conclude the transfer contract | February 13, 2015 (Scheduled) |
(3) Implement the transfer | February 13, 2015 (Scheduled) |
6. Posting of Extraordinary Income and Looking Ahead
As a result of the transfer of the Rights, a gain on sales of property, plant and equipment of ¥7.3 billion is to be posted under extraordinary income for the Company's first quarter of the fiscal year ending December 31, 2015 (January 1, 2015, through December 31, 2015).
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