April 28, 2021 | |
To whom it may concern: | |
Company Name: | LeTech Corporation |
(Stock code: 3497 TSE - Mothers) | |
Address: | 3-3, Doyamacho, Kita-ku, Osaka |
Representative: | Tetsuji Hirano,President and Representative |
Director | |
Contact: | Takashi Mizumukai, Director, General Manager |
of Administration Division | |
TEL.+ 81-(0)6-6362-3355 |
Notice Concerning the Completion of Execution of Pipeline Agreement with
Starwood Capital Asia Limited
LeTech Corporation (the "Company") hereby announces that the pipeline agreement (the "Agreement") announced on April 27, 2021 in the "Notice Concerning Execution of Pipeline Agreement with Starwood Capital Asia Limited" has been completed today.
1. Objectives of Agreement
The Company's Real Estate Solution business, as its main business, purchases real properties based on property information from various sources, increases their asset value by applying appropriate renovations and conversions, and supplies such properties as are required by its customers. It is now resolved that the Company and Starwood Capital Asia Limited ("SCA"), an affiliate of Starwood Capital Group of the United States, a global private investment firm focused on real estate, completed the pipeline agreement with respect to a supply of real properties.
As a result of the Agreement, it is expected that the Company's decision-making and business-scheme structuring around the purchase and sale of properties will be expedited, larger-scale properties will be continuously developed, large and stable purchasers will be secured, and the Company's business base through a variety of structures will be enhanced.
2. Outline of Pipeline Agreement
- With respect to any real property owned or developed by the Company, prior to the provision of information thereof to a third party, such information will be provided to SCA and Starwood Capital Group, its affiliates, and investment funds managed and sponsored by Starwood Capital or any of its affiliates (collectively, "Starwood Capital") in order for Starwood Capital to consider the acquisition of such property, and the first refusal right will be granted to Starwood Capital.
- In the event the Company obtains information of an opportunity to acquire any property which satisfies Starwood Capital's investment criteria, the Company will provide Starwood Capital with information thereof required by Starwood Capital to consider the acquisition of such property before providing the same to a third party.
- With the objectives of enhancing investment efficiencies, realizing investment strategies, securing sources of revenues during the current term and maximizing profits on sale, etc., the Company and SCA will jointly structure
a scheme to acquire and manage existing or developed real properties other than those covered by the Agreement.
The effective term of the Agreement will initially be three (3) years from 28th April, 2021 through 27th April, 2024, which may be renewed on the same terms and conditions through the parties' mutual consultation. The targeted value of real properties to be acquired by Starwood Capital from the Company based on real property information provided by the Company will be 20 billion Japanese yen (excluding tax) in total.
3. Outline of Counterparty to Agreement
(1) Name | Starwood Capital Asia Limited | |
(2) Location | Somptueux Central, 20/F, | 52-54 Wellington Street, |
Hong Kong | ||
(3) Representative | Kevin Lee | |
Managing Director | ||
Head of Asia Real Estate | ||
(4) Relationship between the Company and the counterparty | Capital Relationship | Not applicable |
Personal Relationship | Not applicable | |
Business Relationship | Not applicable | |
Status as a related party | Not applicable | |
- Business description, capital, establishment, major shareholders and shareholding ratio, and operating results and financial position of the company for the most recent three years are omitted due to the internal regulations of the contracting party and confidentiality concerns.
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Schedule of the Agreement
April 27, 2021 Resolution by the Board of Directors of the Company April 28, 2021 Conclusion of the Pipeline Agreement - Future Outlook
Although the immediate impact of this transaction on the Company's business results is minor, it is considered that the transaction will benefit the increase of the Company's enterprise value in mid- and long-term basis. Any matter found in the future circumstances that should be disclosed will be promptly announced.
End of Document
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Legal Corporation published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 06:08:05 UTC.