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| 1. Dissolution and Liquidation of Hokuriku
Estate Co., Ltd. |
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At the January 16, 2002 meeting of the board of directors
of Mitsubishi Estate, the decision was made to dissolve
the subsidiary company Hokuriku Estate Co., Ltd. effective
March 15, 2002.
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Background of the Dissolution and Liquidation
Decision |
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Mitsubishi Estate established Hokuriku Estate in 1970
for the purpose of pursuing projects such as urban renewal,
suburban housing development, and the management of
office properties throughout the Hokuriku region, with
a focus on Kanazawa City. However, the company’s
operations were deteriorated by rental income from the
Kanazawa Park Building, which provided far less income
than expected coupled with the burden of interest payments
on company debt. With little expectations of future
recovery, the decision to liquidate the company was
made. Further, as a part of the liquidation procedure,
the company will transfer a 26.22811% holding in the
Kanazawa Park Building to Japan Real Estate Investment
Corporation, effective February 28th, at a price of
1.37 billion yen.
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Outline of Hokuriku Estate Co., Ltd. |
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| Name: |
Hokuriku Estate Co., Ltd. |
| Head office: |
1-1, 3-chome Hirooka Kanazawa City,
Ishikawa Prefecture |
| Executive officer: |
Ken Horikoshi, President and CEO |
| Type of business: |
Real estate |
| Date established: |
August 6, 1970 |
| Paid-in capital: |
160 million yen |
| No. common stocks issued: |
160,000 shares (face value: 1,000
yen/share) |
| Shareholder capital: |
2094 million yen( as of the end of September 2001) |
| Total assets: |
4131 million yen (as of the end of
September 2001) |
| Financial year-end: |
March |
| No. of employees: |
8 |
| Major shareholder: |
Mitsubishi Estate Co., Ltd. 160,000
shares (100.00%) |
| Financial results (last 3 years): |
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| (unit: million yen) |
| Fiscal year ended |
Net sales |
Ordinary profits |
Net profits |
| March 2001 |
650 (unit: million yen) |
101 (unit: million yen) |
91 (unit: million yen) |
| March 2000 |
527 (unit: million yen) |
134 (unit: million yen) |
102 (unit: million yen) |
| March 1999 |
699 (unit: million yen) |
48 (unit: million yen) |
48 (unit: million yen) |
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| Losses as a result of dissolution: |
4104 million (forecasted) |
| Dissolution schedule: |
March 15, 2002 General Shareholders’
Meeting |
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Assets of Kanazawa Park Building Operations
to be Transferred |
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| Land: |
26.22811% of total area of Kanazawa
Park Building (6,642.71 square meters) in 101, 3-chome
Hirooka, Kanazawa City (1742257/5050710) |
| Building: |
Steel-framed, reinforced concrete
structure, 2 floors below ground /12 floors above
ground. |
| Total floor area: |
43,481.20 square meters (1742257/6642710) |
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| 2. Transfer of Kanazawa Park Building
Holdings |
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At a meeting of the board of directors of Mitsubishi
Estate on January 16, 2002, directors approved the sale
of a 28.89951% holding (of a total holdings of 29.89951%)
of the Kanazawa Park Building to Japan Real Estate Investment
Corporation as part of a restructuring of the company’s
Building Business Division portfolio.
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| Details of Asset Transfer |
| Location: |
101, 3-chome Hirooka Kanazawa City,
Ishikawa Prefecture, Japan |
| Land area: |
28.89951% of total area of Kanazawa
Park Building (6,642.71 square meters) in 101, 3-chome
Hirooka, Kanazawa City (1742257/5050710) |
| Building: |
Steel-framed, reinforced concrete
structure, 2 floors below ground / 12 floors above
ground |
| Total floor area: |
43,481.20 square meters; sale of 1919711/6642710
out of 1986138/6642710 |
| Construction completed: |
October 1991 |
| Book value: |
5606 million yen (Building: 3174 million
yen; Land: 2432 million yen) |
| Selling price: |
1510 million yen |
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| Outline of Buyer |
| Trade name: |
Japan Real Estate Investment Corporation |
| Head office: |
3-3-1 Marunouchi, Chiyoda-ku, Tokyo,
Japan |
| Managing director: |
Yoneichiro Baba |
| Investment funds: |
81260 million yen |
| Type of business: |
Asset management in accordance with
the laws governing investment trusts and investment
corporations |
| Relationship to
Mitsubishi Estate: |
Mitsubishi Estate owns 10,160 shares
of Japan Real Estate Investment Corporation’s
outstanding 160,400 shares |
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| Transfer Schedule |
| January 16, 2002 |
Board of Directors’ Meeting |
| February 28, 2002 |
Signing of sales contract; transfer
of holding |
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