Hitachi Ltd. said Friday it is considering selling its headquarters building in Tokyo’s Chiyoda Ward and renting space in a nearby building.
Selling the 18-story building is part of the electric machinery maker’s consolidation plan, which also includes relocating its nine other Tokyo offices into several buildings near JR Tokyo Station.
The consolidation can cut up to 15 percent off rent and maintenance costs, Hitachi officials said.
The officials declined to elaborate on the price and target date of the sales, noting they were still in negotiations with Nippon Sogo Fund Co., a real estate investment firm affiliated with Mori Trust Co.
Nippon Sogo is expected to buy the 20-year-old building and sell real estate investment trusts to investors, who would receive returns on the building’s rental income.
The officials said Hitachi is considering the move as a rush of new downtown office towers is pushing down rents and because the information technology infrastructure in the new buildings is much better.
Some 3,000 employees currently work in the headquarters building, and another 3,000 are spread across nine other locations in the area.
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