Announcement of the Capital Alliance with ITOCHU Corporation
March 26, 2015
1. Content of the Capital Alliance
AD Capital Co., Ltd. (hereinafter “AD Capital”) and ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) have concluded formal agreements that ITOCHU shall underwrite third-party allocation of new shares by AD Capital. ITOCHU shall also acquire outstanding shares of AD Capital from Asuka Holdings Inc. (headquartered in Minato-ku, Tokyo; Kozo Matsuoka, President & CEO; hereinafter “Asuka HD”). This will bring ITOCHU’s stake in AD Capital to 28.3%. Completion of the investment is scheduled from May onward.
2. Purpose of the Capital Alliance
By integrating ITOCHU’s real estate solutions (such as real estate development, raising value, and brokerage) with the finance solutions capability of AD Capital and also by collaborating with the Spring Real Estate Investment Trust (listed on Hong Kong Stock Exchange), managed by the subsidiary of AD Capital - Spring Asset Management Limited (headquartered in Hong Kong), we aim to expand our real estate business in Japan and throughout Asia. We believe this would contribute to the expansion of AD Capital’s operating revenue.