TOKYO—Toshiba Corporation (TOKYO: 6502) today contracted with Nomura Real Estate Development Co., Ltd. (NRE) for the sale of the site of its Ome Complex in western Tokyo. The sales price from the transaction is approximately 10-billion yen.
The sale, advanced under the Toshiba Rebuilding Initiative, will improve efficiency of asset use and strengthen Toshiba’s balance sheet. The date of record of the transaction is December 27, 2016.
Toshiba and NRE will enter into a lease back agreement for the site, and in the period to the end of FY2017. Toshiba will cease all business operations at Ome Complex in March 2017, the end of FY2016. Toshiba will demolish the buildings on the site, before finally closing it down. Toshiba Group employees currently employed at Ome Complex will transfer to other locations.
Toshiba established Ome Complex in 1987 and operated it for 48 years. In its time, it has been an R&D and manufacturing site for office computers, word processors, PCs and HDD. It ended manufacturing in 2005, due to structural reform of the PC business, and its main use since has been as a PC and TV development site.
Toshiba continues to promote operations grounded in cash flows.
Summary of the Sale
Property name: Toshiba Ome Complex
Location:2-9 Suehiro-cho, Ome-shi, Tokyo 198-8710, Japan
Site area: 119,965.16 m2
Purchaser: Nomura Real Estate Development Co., Ltd.
Sale price: Approx. 10 billion yen
Date of record: December 27, 2016
Toshiba Corporation, a Fortune Global 500 company, channels world-class capabilities in advanced electronic and electrical product and systems into three focus business fields: Energy that sustains everyday life, that is cleaner and safer; Infrastructure that sustains quality of life; and Storage that sustains the advanced information society. Guided by the principles of The Basic Commitment of the Toshiba Group, “Committed to People, Committed to the Future”, Toshiba promotes global operations and is contributing to the realization of a world where generations to come can live better lives.
Founded in Tokyo in 1875, today’s Toshiba is at the heart of a global network of 551 consolidated companies employing 188,000 people worldwide, with annual sales surpassing 5.6 trillion yen (US$50 billion). (As of March 31, 2016.)
To find out more about Toshiba, visit www.toshiba.co.jp/index.htm