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Japan Airlines International, a subsidiary of
the JAL Corporation, has decided to sell Hanover Court Building, its London property located in the Mayfair district of the West End. It will sell the property to a special subsidiary to be set up by Mitsui
Fudosan (U.K.) Ltd, a 100% owned subsidiary overseas company of Mitsui Fudosan.
In the JAL Group medium term corporate revival plan issued February 2007, the company stated that it would concentrate its resources on
core air transport business segment in order to achieve sustainable growth. The company is trying to improve asset efficiency by
centralizing business resources in the air transport business whilst selling non-core assets. The sale of Hanover Court Building property
forms part of this move.
A final agreement between JAL and Mitsui Fudosan will be concluded late January 2008 and the transfer of the property is expected
late
March 2008.
This asset is a commercial building housing JAL’s Europe, Middle East, Africa Region (EMEAR) and London offices. The airline
has decided to
sell the property after a comprehensive study of local real estate market conditions. JAL has already made arrangements to transfer its
EMEAR and London offices to a new location in London.
As a result of the asset sale, JAL will post special income of about 5.6 billion yen in March 2008, but this was already included in the
consolidated revised financial forecast, announced on November 6, 2007.
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