Nissan to sell its HQ building in Yokohama for ¥97 bil

Troubled Japanese automaker Nissan Motor Co said Thursday it was selling its headquarters building in Yokohama for 97 billion yen ($630 million), as part of its revival efforts.

Nissan will lease the building and continue to use it as its headquarters, while recording 73.9 billion yen ($480 million) as gains from the sale to Tokyo-based real estate operator MJI Godo Kaisha, it said in a statement.

The funds will be used to modernize internal systems at its headquarters, speeding up the use of AI-driven systems and digital modernization in various operations, according to Nissan, which makes the March subcompact and Infiniti luxury models.

MJI Godo is a special purpose trust owned by the Minth Group, a major auto parts maker whose shares are listed in Hong Kong. The cost of the lease was not disclosed.

Nissan, set to report first half financial results later in the day, has been struggling to return to profitability, after posting a 670.9 billion yen ($4.4 billion) loss for the fiscal year through March.

It has promised a turnaround under a new chief executive, Ivan Espinosa, a Mexican with two decades of experience at Nissan, who took the helm earlier this year.

“This move reflects a disciplined approach to capital efficiency unlocking value from non-core assets to support transformation during the challenging years,” the company said of the sale.

It said the move reflects the company’s strategy to innovate, stay competitive and aggressively carry out research for future growth.

Nissan has said it’s cutting 15% of its global work force, or about 20,000 employees. It’s also closing its flagship factory in Oppama, Kanagawa Prefecture.