In an effort to strengthen its financial position, Nissan Motor Co. on Thursday sold one of its two head office buildings in Ginza, an upscale shopping district in Tokyo, to Mori Building Development Co. and affiliate Mori Building Sangyo Co., the firm said.
The contract signed by the three companies indicates that Nissan sold its newer head office building, which stands on a 3,200 sq. meter plot. Nissan currently shares the building with another company and the automaker only owned 68.2 percent of the building, an area of 23,600 sq. meters.
Nissan sold its portion of the property to the Mori Building group companies for 14.65 billion yen, gaining 7.185 billion yen in profit, the firm said.
But Nissan will continue to use the building as its headquarters after signing a 10-year lease, the automaker said.
Facing severe financial conditions and declining sales, Nissan is working to reduce its outstanding debt.
Real estate sales and other restructuring measures -- such as reducing its models and sales channels -- were spelled out in its "Global Business Reform Plan" spelled out in June.