Ailing condominium builder Daikyo Inc. said Friday it will sell properties from its noncore operations to seven companies, including a special purpose company established by the Morgan Stanley group of the United States, for about 80 billion yen.
Properties covered by the deals, most of which are due to be completed on Feb. 1, include 24 office buildings, 16 commercial establishments, some 2,000 rental condominiums and a golf course, Daikyo said.
Daikyo is divesting noncore operations to focus on core operations, such as condo sales and management, as the state-backed Industrial Revitalization Corp. of Japan decided earlier this year to help rehabilitate the company.
Daikyo also intends to retreat from overseas operations.
The IRCJ is expected to name a sponsor for Daikyo's rehabilitation in January.
In a separate announcement, Daikyo said it will reduce its capital to 500 million yen from the current 65 billion yen, without cutting the outstanding number of its shares, on March 8.