Troubled Japanese automaker Nissan said Thursday it was selling its headquarters building in Yokohama, southwest of Tokyo, for 97 billion yen ($630 million), as part of its revival efforts.
Nissan Motor Co. will lease the building and continue to use it as its headquarters, while recording 73.9 billion yen ($480 million) as gains from the sale to Tokyo-based real estate operator MJI Godo Kaisha, it said in a statement.
The funds will be used to modernize internal systems at its headquarters and accelerate digital modernization and the rollout of AI-driven systems, according to Nissan, which makes the March subcompact and Infiniti luxury models.
MJI Godo is a special purpose trust owned by the Minth Group, a major auto parts maker whose shares are listed in Hong Kong. The cost of the lease was not disclosed.
Also Thursday, Nissan reported a 221.9 billion yen ($1.4 billion) loss for the fiscal first half. It recorded a 19.2 billion yen profit during the same period a year ago. It did not give a full fiscal year net profit forecast.
Over the six months through September, Nissan's sales slipped nearly 7% to 5.58 trillion yen ($36 billion), The Associated Press reported.
Nissan has been struggling to return to profitability, after posting a 670.9 billion yen ($4.4 billion) loss for the fiscal year through March.
It has promised a turnaround under new chief executive Ivan Espinosa, a Mexican with two decades of experience at Nissan who took the helm earlier this year.
Nissan’s first half global vehicle sales declined, especially in Japan. But it said vehicle sales were improving in China and the US, adding that new models were in the works and were expected to drive sales.
“Nissan is on track,” Espinosa told reporters after releasing the earnings results. “We remain focused on recovery.”
The move to sell the headquarters reflects the company’s strategy to innovate, stay competitive and aggressively carry out research for future growth, Nissan said.
“This move reflects a disciplined approach to capital efficiency unlocking value from non-core assets to support transformation during the challenging years,” the company said of the sale.
Nissan has said it’s cutting 15% of its global work force, or about 20,000 employees. It’s also closing its flagship factory in Oppama, Japan. All the Japanese automakers are being hit by the impact of President Donald Trump's tariffs.
Nissan stocks, which have been slipping over the past year, dipped to 337 yen ($2.19) from 344 yen ($2.23) the previous day.
