Japan’s largest travel company to sell HQ building

JTB Corporation, the largest travel agency in Japan, is selling off two of its buildings in Tokyo and Osaka in a deal that could fetch tens of billions of Yen. The company has struggled since the start of the pandemic, with travel transaction volume dropping 96% in 2020.

The JTB Tennozu Building is located in front of Tennozu Isle Station on a man-made island to the southeast of Shinagawa Station. It is a 20-story office building that was built in 1992 as part of the Sea Fort Square development. 

The company has held its head office building in Shinagawa since 2001, after relocating from the Tokyo Station area. After the sale, the company will continue to lease back the office space.

JTB reported a net loss of 105.1 billion Yen for the year ending March 2021. The company is seeking to close 20% of its 480 stores and lay off as many as 6,500 of its 29,000 staff.

Another travel agency, H.I.S. Co., is planning to sell its head office space in the Kamiyacho Trust Tower (Tokyo World Gate) this month. The 38-story office tower was completed in March 2020. H.I.S. acquired a portion of the building for 30 billion Yen, which will be sold to a real estate company for 32.5 billion Yen (US$295 million). The travel agent occupied 7,667 sqm of office space on the 4th and 5th floors. The sale price works out to around 4.24 million Yen per square meter (approx. US$3,580/sq.ft).

Source: The Yomiuri Shimbun, September 13, 2021.

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