Tokyo Gas said to plan sale of Ginza building for $191 million

Tokyo Gas plans to sell a commercial building in Ginza, Tokyo to Mantomi Asset Management for over ¥30 billion ($191 million), according to people familiar with the matter.

Mantomi Asset submitted the highest bid for the building being sold, GINZA gCUBE, which is owned by Tokyo Gas’s subsidiary, the people said, asking not to be identified discussing confidential information. Tokyo Gas is expected to record a gain on the disposal in its financial results for the current fiscal year ending March 2026, they said.

Tokyo Gas, Japan’s top utility gas provider, is under pressure to improve capital efficiency after activist Elliott Investment Management became a major shareholder and demanded the company sell its real estate and other assets with little relevance to its energy business. Tokyo Gas decided to sell the Ginza building and invited multiple parties to participate in the auction process.

Spokespeople for Tokyo Gas and Mantomi Asset declined to comment on the deal.

In its medium-term management plan announced in October, Tokyo Gas laid out a policy to sell properties that have risen in value or unlikely to contribute to growth. The firm intends to dispose a cumulative total of ¥70 billion worth of real estate by the fiscal year ending March 2029.

GINZA gCUBE is a commercial building with 12 floors above ground and 2 floors below ground. It is located within a 5-minute walk from Tokyo Metro Ginza Station. The property was built in 2008 on the site of the former Ginza Gas Hall Building.