NTT Docomo weighs selling real estate for more than $600 million

[TOKYO] NTT Docomo is considering selling the land surrounding four office buildings it owns in the Tokyo metropolitan area as the mobile phone operator looks to shore up its finances, according to people familiar with the matter.

The total sale amount is expected to exceed US$645 million, the people said, asking not to be identified because the deliberations are private. NTT Docomo has already approached several potential buyers, including major property companies, the people said.

Selling the land would be consistent with the company’s “asset-light” strategy at a time when capital investment pressures are increasing. Docomo’s core consumer communications business continues to struggle, with operating profit expected to fall for a fourth straight year. 

Any transactions would be limited to the land only and won’t include the buildings, some of which contain important telecommunications equipment, the people said. The mobile carrier, owned by NTT, hasn’t sought foreign buyers due to economic security considerations, the people added.

“We are currently examining ways to streamline or relocate building facilities with a view toward future network service provision,” Docomo said in an emailed response. “As part of our asset-light initiatives, we intend to make appropriate decisions concerning the land.”

The real estate includes the site of the NTT Docomo Yoyogi Building – commonly known as Docomo Tower – that dominates the skyline to the south of Shinjuku station. 

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Rather than a bulk deal, the company is looking to sell each property individually, according to the people. BLOOMBERG