Mitsubishi Heavy Industries Ltd. is considering selling its real estate subsidiary Ryoju Facility and Properties Co. for around ¥100 billion as part of efforts to streamline its less competitive businesses, sources familiar with the matter said Friday.
Mitsubishi Heavy, which has been focusing on investment in growth areas such as regional jets, will likely start soliciting bids for the unit before the end of March, the sources said. A Japanese home builder is among the possible bidders.
With a workforce of around 2,000, Tokyo-based Ryoju Facility and Properties was established in January, integrating eight firms under Mitsubishi Heavy. The subsidiary had sales of ¥102.1 billion in fiscal 2014, according to its website.
The sale is seen as part of MHI’s strategy of bolstering its foundation to keep up future investment in growth areas, bringing further restructuring steps into focus.
Another subsidiary, Mitsubishi Aircraft Corp., is developing Japan’s first domestically produced regional jet, although the delivery date has been postponed several times.
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