• Kyodo

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Softbank Investment Corp., an affiliate of Internet investor Softbank Corp., said Tuesday it will take over the operations of failed Nagoya-based condominium builder Sawako Corp. in September for about 600 million yen.

Sawako is currently undergoing court-led civil rehabilitation procedures.

Softbank Investment said it plans to set up a new company to take over Sawako’s operations next month and to send executives and employees to the new firm, tentatively named SBI Sawako Corp., with the goal of relisting.

The company said the buyout will be financed by an investment fund set up by the Softbank group.

Softbank Investment said it believes Sawako could thrive under better management, given the company’s experience in building condominiums at low costs.

Softbank Investment is expected to sell Sawako shares for a capital gain in the future.

Sawako filed for court protection from creditors on Aug. 1 with liabilities of 2 billion yen.

The company posted some 22 billion yen in sales at its peak in the business year that ended on July 31, 1998. It was delisted from the Jasdaq over-the-counter market last year after a dispute with its auditor over accounting procedure, a move that hurt confidence in its finances.

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