Shokusan Jutaku Sogo Co., a failed builder of custom-made houses, has agreed to sell its new-home construction business to Painthouse Co. for 1 billion yen, the companies said Wednesday.
The sale will include Shokusan Jutaku's Homest brand, computer systems related to home construction, showrooms and use of some of its main office building in Shibuya Ward, Tokyo.
Painthouse, a painting and renovation firm based in Kanagawa Prefecture with capital of 781 million yen, said earlier this week it will set up a new company to take over Shokusan Jutaku's operations related to new homes.
Sales from Shokusan Jutaku's new home business totaled 28.16 billion yen in 2000.
The sale will be made a week after approval by the Tokyo District Court of Shokusan Jutaku's application for treatment under the Civil Corporate Revival Law.
Shokusan Jutaku filed for the fast-track legislation for corporate rehabilitation Sunday after giving up efforts to rehabilitate itself.
Misawa Homes Co., a builder of prefabricated wooden homes, plans to invest 100 million yen in the failed company and hold a 20 percent stake.
Homes currently under construction by Shokusan Jutaku will be completed as planned with Misawa's support.