JAL Sells London Property to Mitsui Fudosan

Japan Airlines International, a subsidiary of the JAL Corporation, has decided to sell Hanover Court Building, its London property located in the Mayfair district of the West End. It will sell the property to a special subsidiary to be set up by Mitsui Fudosan (U.K.) Ltd, a 100% owned subsidiary overseas company of Mitsui Fudosan.

In the JAL Group medium term corporate revival plan issued February 2007, the company stated that it would concentrate its resources on core air transport business segment in order to achieve sustainable growth. The company is trying to improve asset efficiency by centralizing business resources in the air transport business whilst selling non-core assets. The sale of Hanover Court Building property forms part of this move.

A final agreement between JAL and Mitsui Fudosan will be concluded late January 2008 and the transfer of the property is expected late March 2008.

This asset is a commercial building housing JAL’s Europe, Middle East, Africa Region (EMEAR) and London offices. The airline has decided to sell the property after a comprehensive study of local real estate market conditions. JAL has already made arrangements to transfer its EMEAR and London offices to a new location in London.

As a result of the asset sale, JAL will post special income of about 5.6 billion yen in March 2008, but this was already included in the consolidated revised financial forecast, announced on November 6, 2007.

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