NTT Docomo Inc., a Japanese mobile carrier, sold two plots of land in central Tokyo for about 59 billion yen (US$371 million) by the end of March, according to people familiar with the matter and land registry records, while retaining ownership of the buildings on the sites.

The company sold land around a building in Hitotsubashi, Chiyoda Ward, to Sumitomo Corp. for about 50 billion yen (US$315 million) and land beneath a building in Shinjuku to Japan Post Real Estate Co. for about 9 billion yen (US$56.6 million).

The sales come as Docomo faces pressure in its core consumer communications business from rising promotional costs, higher network investment, and intensifying competition, after several years of profit decline.

A spokesperson said generally that improving cost efficiency and asset-holding efficiency can lead to more funding.

The sales also come amid a strong property market. Japanese real estate has drawn buyers such as KKR & Co. and Blackstone Inc. as prices have risen, but many investors still see room for gains.

🔗 Source: Bloomberg

Recent NTT Docomo developments