Notice Regarding the Sale of Real Estate and the Recognition of Extraordinary Income (Gain on Sale of Fixed Assets)
In Takara Group Medium-Term Management Plan for 2030, announced on May 13, 2026, the Company established as its basic policies the “Business Portfolio Strategy for Realizing the Long-Term Vision 2050” and a “Renewed Emphasis on ROIC,” among others, and has set a target ROIC of 7% or higher for the fiscal year ending March 31, 2031, the final year of the plan.
In addition, as one of its financial policies, the Company has adopted a policy of reducing its cost of capital through shareholder returns funded by the effective utilization of interest-bearing debt and the sale of strategically held shares and owned real estate.
Based on this policy, the Company conducted a review of the significance of holding certain real estate properties owned by the Company and its subsidiary, Kawahigashi Shoji Co., Ltd., from the perspective of capital efficiency. As a result, it has decided to sell 18 properties and hereby announces the details as follows.
1. Summary of the PropertiAes to Be Sold
| Owner | Number of Properties | Location | Book Value | Use |
|
Takara Holdings Inc. |
13 | kamigyo-ku, Kyoto (2 properties) Fushimi-ku, Kyoto (5 properties) Minami-ku, Kyoto (2 properties) Mukou City, Kyoto Prefecture Higashi-OsakaCity,Osaka Prefecture Higashinada-ku, Kobe City Hofu City, Yamaguchi Prefecture |
1.7 billion yen | Rental Properties |
|
Kawahigashi Shoji Co., Ltd |
5 | Fushimi-ku, Kyoto City Kuse District, Kyoto Prefecture Hirakata City, Osaka Prefecture Nishinomiya City, Hyogo Prefecture Ritto City, Shiga Prefecture |
2.5 billion yen | |
| Total (Consolidated) | 18 | 4.2 billion yen |
2. Overview of the Purchasers and Transactions
Details regarding the purchasers and sale prices of each property are withheld from disclosure in accordance with agreements with the respective purchasers.There are no capital relationships or personal relationships requiring disclosure between the purchasers and the Company. While certain purchasers maintain ongoing business transactions with the Group, there are no matters requiring special disclosure. In addition, the purchasers do not qualify as related parties of the Company.
The transfer of each property is scheduled to be carried out sequentially as the necessary preparations are completed.
3. Schedule
Board of Directors' Resolution Date: September 15, 2026 (Takara Holdings Inc. and Kawahigashi Shoji Co., Ltd.)
Execution of Sale Agreements (Planned): Sequentially from October to November 2026
Property Transfer Dates (Planned): Sequentially from November to December 2026
4. Impact on the Company's Consolidated Financial Results
As a result of this transaction, the Company expects to record a gain on the sale of fixed assets of approximately 8.8 billion yen as extraordinary income in the third quarter of the fiscal year ending March 31, 2027.
The consolidated earnings forecast for the full fiscal year ending March 31, 2027 is currently under review.
The Company will promptly announce the forecast once it has been finalized.
5. Overview of Kawahigashi Shoji Co., Ltd.
|
(1) |
Company Name |
Kawahigashi Shoji Co., Ltd. |
|
(2) |
Address |
20 Naginataboko-cho, Shijo-Karasuma Higashiiru, Shimogyo-ku, Kyoto City, Kyoto, Japan |
|
(3) |
Representative |
Mineo Kawashima, President and Representative Director |
|
(4) |
Business Description |
Real Estate Leasing |
|
(5) |
Capital |
30 million yen |
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.
