Nissan sells global HQ for 97 bn yen, expects major gain

Nissan Motor Co. announced it will sell its global headquarters building in Yokohama, Japan, through a trust creation and transfer of beneficial interests, followed by a leaseback agreement. The transaction, part of Nissan's "Re:Nissan" restructuring plan, aims to optimize assets and will result in an extraordinary gain on the sale of fixed assets.

The sale involves the land and building, currently used as Nissan's headquarters. The transfer price is 97,000 million yen, against a book value of 23,024 million yen, resulting in an expected gain on sale of 73,905 million yen. This gain is projected to be recognized as an extraordinary profit in the fiscal year ending March 2026. The property will continue to be used as Nissan's headquarters under a 20-year lease agreement commencing December 12, 2025.

The beneficial interests in the trust will be transferred to MJI Godo Kaisha, and the lease agreement will be concluded with Mizuho Trust & Banking Co. The funds from this transaction are intended to be used to promote equipment upgrades and business transformation as part of the "Re:Nissan" plan. The plan aims to achieve profitability in its automotive business and positive free cash flow by fiscal year 2026.