Mizuho Agrees to $2 Billion Sale leaseback of Head Office Buildings

Kyodo News International, Tokyo Knight Ridder/Tribune - February 20, 2004

Japan's biggest bank, Mizuho Financial Group Inc., said on Friday that it would sell its two main branch buildings in downtown Tokyo as part of group-wide cost-cutting initiatives. The group said it planned to securitise and sell the two central Tokyo buildings of its core banking unit, Mizuho Bank, for 217 billion yen ($2 billion), which would result in a 62 billion yen loss on book value.

The group will sell Mizuho Bank's head office building in the Uchisaiwaicho district, formerly the head office of Dai-Ichi Kangyo Bank, to a special-purpose company formed by Dai-ichi Mutual Life Insurance Co. for 105 billion yen ($963 million). The deal will be signed Tuesday for sale to take place March 12.

Mizuho Financial Group will also sell its Otemachi branch building to a special-purpose company of Tokyo Tatemono Co. for 112 billion yen ($1.027 billion) in a deal to be signed and completed next Friday. The building was formerly used for the Fuji Bank head office. The sales are aimed at cutting valuation losses on asset holdings, Mizuho Financial Group said, adding the deals will not affect its earnings outlook for the current business year to March 31.

Both properties will be loaned to Mizuho Bank after the sales, the banking group said. The group was created through the merger of Dai-Ichi Kangyo Bank, Fuji Bank and the Industrial Bank of Japan in April 2002. Sphere: Related Content