Promise Headquarters Building (Otemachi PAL Building)
Mitsui Fudosan and Mitsui & Co. will acquire the Promise Headquarters Building (the Otemachi PAL Building) in Otemachi, Chiyoda-ku, Tokyo. The seller is major consumer financing company Promise and the price is 72.03 billion yen [$850 million]. Each of the buyers will obtain 50% joint ownership in the building.

The Otemachi PAL Building is located directly above the Otemachi subway station and stands on a corner lot near an intersection of Hongo-dori Street. The building has nine stories above ground and three below with 27,923 m2 of total floor space and was completed in 1961.

Promise purchased the building for more than 40 billion yen [$470 million] in 2004. It is occupied by the company’s headquarters, as well as its group companies. After it sells the building, Promise will continue to lease and use it as its headquarters for the time being.

The Mitsui Seimei Otemachi Building, which Mitsui Fudosan acquired for 117.5 billion yen [$1.4 billion] in 2007, stands on the adjacent site to the north of the Promise Headquarters Building. As Mitsui Co. also owns the Mitsui Bussan Building on the adjacent site to the west, both companies seem to be eying a redevelopment project including the adjacent site.
Promise will post a gain on the sale of fixed assets of 30.15 billion yen [$360 million] as an extraordinary profit in its consolidated financial results for the fiscal year ending March 2011.

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[Outline of Dealing]

Name: Otemachi PAL Building (Promise Headquarters Building)

Seller: Promise

Price: 72,031,000,000 yen [$850 million]

Rights: Direct ownership (50% joint ownership each)

Location: 1-2-4 Otemachi, Chiyoda-ku, Tokyo (residence indication)

Access: close to Otemachi subway station

Land area: 2,760.39m2

Total floor space: 27,923.18m2

Structure: SRC

Stories (above/underground): 9/3

Completion: 1961

Dealing period: March 2011 (handover)


[Related article]
- MITSUI FUDOSAN Acquires Mitsui Life Insurance Otemachi Building for 117.5 Bil. Yen


[Related site]
- Announcement from Mitsui & Co. (PDF)

- Announcement from Promise (PDF)