Money-losing Nissan selling headquarters building to gain cash

TOKYO

Troubled Japanese automaker Nissan said on 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 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, speeding up the use of AI-driven systems and digital modernization in various operations, according to Nissan.

Nissan has been struggling to return to profitability.

It has promised a turnaround under a new chief executive, Ivan Espinosa, a Mexican with two decades of experience at Nissan, who took the helm earlier this year.

“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.

It said the move reflects the company’s strategy to innovate, stay competitive and aggressively carry out research for future growth.

Nissan has said it’s cutting 15 percent of its global work force, or about 20,000 employees. It’s also closing its flagship factory in Oppama, Japan.