Nippon Express may sell Tokyo HQ building; report says could fetch $965 mln (updated)

NIPPON EXPRESS HOLDINGS

27/01/2021 01:21

(Changes sourcing to company spokesman, adds shares)
    TOKYO, Jan 27 (Reuters) - Leading Japanese logistics firm
Nippon Express Co  9062.T  said on Wednesday it was considering
selling its headquarters building in Tokyo, a sale which the
Yomiuri newspaper reported could fetch more than 100 billion yen
($965 million).
    The report follows news last week that advertising giant
Dentsu Group Inc  4324.T  was also looking to sell its head
office located just blocks away from Nippon Express's 28-storey
high-rise in the Shiodome district, near the posh Ginza
district.  urn:newsml:reuters.com:*:nL4N2JV1JI
    Tokyo has some of the most expensive land prices in the
world, but with more people working from home due to the
COVID-19 pandemic, some firms are rethinking their real estate
holdings.
    Nippon Express is constructing a new headquarters site in
another area of Tokyo, and had originally planned to rent out
space in the current building.
    It is also considering selling or using it for its own
purposes, a Nippon Express spokesman said, declining to say when
or why those options were added. 
    The Yomiuri report said that more instances of telecommuting
were making it difficult to find tenants, and investment funds
were expressing interest in buying the building.
    Shares in Nippon Express rose 1.8% in early trade,
outperforming the Tokyo market's  .TOPX  0.64% gain.
    The spokesman also said the move to the new headquarters
site, originally scheduled for September, was likely to be
pushed back due to coronavirus-related construction delays.

     ($1 = 103.6100 yen)

 (Reporting by Chang-Ran Kim; Editing by Himani Sarkar and
Rashmi Aich)
 ((ran.kim@thomsonreuters.com; +81-3-4520-1228;))