November 27, 2014 / 10:42 AM / 4 years ago

Mitsubishi Estate to sell Tokyo property to Mizuho for $1.35 billion

TOKYO (Reuters) - Mitsubishi Estate Co Ltd, one of Japan’s largest property developers, said on Thursday it has agreed to sell a 41-year-old office building in Tokyo back to Mizuho Financial Group for 159 billion yen ($1.35 billion).

Mitsubishi bought the 15 storey structure in the Otemachi business district from Mizuho in 2003 for an undisclosed sum. Mitsubishi said in a statement it would book a special profit of 36.5 billion yen from selling it.

The property will be redeveloped along with neighboring buildings, Mitsubishi said in a separate statement.

Mizuho bought the building as a long-term investment over which it wanted the management flexibility afforded by complete ownership, a Mizuho spokeswoman said.

The transaction follows Mizuho’s purchase of a stake in an office tower in the same area earlier this year through its main banking unit.

Mizuho Bank in February bought 30 percent of Otemachi Tower for 178.2 billion yen from developer Tokyo Tatemono Co.

The bank had sold the building in 2004 to Tokyo Tatemono, which redeveloped it into a complex of office and retail space.

Otemachi neighbors Marunouchi, Japan’s most popular business district. Both areas have been under redevelopment in recent years.

Reporting by Junko Fujita; Editing by Christopher Cushing

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