Japan Airlines International has decided at it’s board of directors’ meeting 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 last March 2008.
This asset is a commercial building housing JAL’s Europe, Middle East, Africa
Region (EMEAR) and London offices. The airline 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
with details to be announced at a later date.
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.