AEON Chatan building sold to Goldman Sachs

Category: [ Business ]

Goldman Sachs, one of the largest investment an banking companies, is increasing it’s portfolio of properties it owns on Okinawa, as it purchased the AEON Chatan building and land in a deal dated May 31st.

The property was previously owned by the Chatan Village Products Corporation that sold it to Goldman Sachs for a reported ¥4.5 billion. The deal includes all shares of AEON Chatan Building Co. and also another building that the corporation owns in Ginowan.

AEON still continues to manage the building company, as the leasing contract of the building with AEON Ryukyu Co. runs until 2018. The AEON Chatan Building Co. is expected to continue as a separate unit at least until then.

The Chatan Village Products Corporation was organized as a joint venture of business owners in the town, who also owned the shares in the company that is capitalized with ¥360 million. Corporation representative explains that because the company had an accumulated debts of ¥2.4 billion, the building is getting old, and company shareholders worry about repair expenses and tenants’ rental fees are likely to go down, they decided to sell. He added that many shareholders are also getting old and thar was another reason to seek a deal.

The Goldman Sachs Group suggested a plan to buy the corporation in March. Shareholders accepted the plan, and Goldman Sachs made payment on May 31st.

The AEON Chatan building has a floor space of 20,204 square meters on three floors. The building opened in 1998 next to Mihama American Village.


Useful links