Tepco plans to sell 280 properties to raise ¥200 billion

Kyodo

Tokyo Electric Power Co. is planning to sell 280 properties to raise ¥200 billion in cash for use in compensating people affected by the Fukushima No. 1 nuclear plant crisis, sources close to the matter said Friday.

The properties include its headquarters building, dormitories and recreation facilities, the sources said.

The doubling of its property sales target from ¥100 billion in May reflects the utility’s urgent need to raise funds for redress payments due to start in October, and for expanding fossil fuel-based operations to offset losses in its nuclear power generation capacity, they said.

The increase in the real estate selloff will substantially boost Tepco’s ¥600 billion target for asset sales, which includes securities, subsidiaries and real estate.

After compiling a list of about 350 properties worth about ¥300 billion, Tepco found that 280 of them worth some ¥200 billion were eligible to be sold, excluding substations and other facilities dedicated to electricity operations, the sources said.

The bidding for health facilities, idle land and other properties will start in October.

It also plans to sell and then lease back its head office building so it can continue using it.