Saturday, March 15, 2008

Shinsei Bank Completes $1.18 Billion Sale Leaseback of Tokyo HQ

Japan Economy News & Blog - March 13, 2008

Apparently burdened by heavy subprime-related losses, Shinsei Bank has announced the sale of its Tokyo head offices to a real estate fund connected with Morgan Stanley. About a month ago, Morgan paid about $440 million to acquire Citibank’s Tokyo headquarters in Shinagawa. Shinsei’s headquarters, located across from Hibiya Park, went for about $1.18 billion.

Shinsei appears to be in a bit of trouble, with a steadily eroding share price - down about 34% since the end of January - and about $2 billion still owed to the Japanese government, thanks to a bailout about a decade ago, when the bank was known as Long Term Credit Bank.

Shinsei apparently intends to remain in the building for now (and hopefully they keep that Starbucks on the ground floor), but will be looking to move to a new location in about three years.

Earlier this week, it was announced that Resona Bank would also be putting their Tokyo headquarters up for sale, at a price in the $1.75 billion range. Resona is also burdened with repayment obligations to the government, and also intends to move office within the next few years. Resona’s share price has fallen about 16% since the beginning of 2008. Sphere: Related Content

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