Company name: Fuji Heavy Industries Ltd.
Representative: Mr. Ikuo Mori, President and CEO
Code number: 7270 (First Section of Tokyo Stock Exchange)
Contact for inquiries; Mr. Toshimasa Nakamura
General Manager of Administration Department
Phone: (0)3-3347-2005
The transfer of head office and the disposal of Shinjuku Subaru Building
Fuji Heavy Industries Ltd. (FHI) has announced that FHI will move head office and sell the current head office building and its land to Odakyu Electric Railway Co., Ltd. (Odakyu), which has been resolved at the Board of Directors meeting held today.
FHI's head office, which is located at Shinjuku Subaru Building, and its land are co-owned by FHI and Subaru Kosan Co., Ltd. wholly owned subsidiary of FHI.
Announcement
1. New Head Office
1-20-8, Ebisu, Shibuya-ku, Tokyo
2. Schedule of transfer (Plan)
October, 2014
3. Reason of transfer
FHI is considering to reorganize and enhance its function of headquarter which is decentralized in Shinjuku, Ebisu, Mitaka, and Omiya currently, to raise operational efficiency. Furthermore, the improvement of its working environment for forty-four years after construction of Shinjuku Subaru Building is also crucial.
Therefore, FHI is planning to reconstruct Ebisu Subaru Building owned by FHI Group and transfer it's headquarter function there. However, the details of the reconstruction including its scales are not decided yet.
At the same time, FHI will sell Shinjuku Subaru Building to Odakyu.
4. Impact on performance
As transfer of ownership of Shinjuku Subaru building with the disposal is scheduled to be next fiscal year and the gain on sale will be also posted next fiscal year, the impact on FHI business results of this fiscal year is limited.
FHI is planning to budget this gain on disposal (approximate 25 billion yen) for next fiscal year.
5. Others
| (1) | Amendment of "Location of Head Office" in Articles of Incorporation will be proposed to be voted on at the Ordinary General Shareholders Meeting held in the preceding year of the transfer of Head Office when the relocation date is determined. |
| (2) | The details of Shinjuku Subaru Building, its land and the date of disposal are as follows. |
<Contents of assets>
Contents of assets and location:
Subaru Building 1-7-2, Nishi-shinjuku, Shinjuku-ku, Tokyo
Site area: 1,600m2
Gross floor area: 20,385m2
Book value: 7.41 billion yen (building 1,139 million yen, land 6,271 million yen)
Sales price (plan): 34 billion yen
Gain on sales (before income taxes): approximate 25 billion yen
(FHI 5 billion yen, Subaru Kosan Co., Ltd. 20billion yen)
<Outline of the party>
Company name: Odakyu Electric Railway Co., Ltd.
Location of Head Office: 2-28-12, Yoyogi, Shibuya-ku, Tokyo
Representative: Yorihiko Osuga
Paid-in Capital: 60,359 million yen
Date of foundation: June 1,1948
Consolidated Net assets: 213,218 million yen (at the end of March 31, 2010)
Consolidated Total assets: 1,299,289 million yen (at the end of March 31, 2010)
Main Business: Railway, Retail distributor, Real estate business and others
Relationship between FHI and Odakyu: FHI and its subsidiaries have no capital, personnel, and transactional relationship with Odakyu. Additionally, Odakyu is not FHI and its subsidiaries' related party.
<Date of disposal>
| August 30, 2010 | Resolution of the Board of Directors meeting |
| August 30, 2010 | Conclusion of sales agreement |
| April 28, 2011 | Transfer of ownership |
End.