Japanese pachinko hall operator Okura Holdings has reached an agreement to purchase a residential and commercial building in Nagasaki as part of efforts to diversify its income streams due to the impact of the COVID-19 pandemic on its business last year.
The company revealed via a Hong Kong Stock Exchange filing that its wholly-owned subsidiary, Ks Property Co Ltd, will purchase the land and building, located in Nagasaki, for a total consideration of JPY442 million (US$4 million). The building currently comprises residential units, clinics, banks and parking spaces, and the properties are subject to ongoing leases.
Explaining the reasons for the acquisition, Okura said, The Group has been actively exploring opportunities to enhance and diversify its revenue stream.
The Directors, taking into account various factors such as the location, condition and potential appreciation in value of the Properties, consider that the Acquisition provides an excellent opportunity for the Group to expand its property investment portfolio, which will allow the Group to benefit from any future capital appreciation, and generate a new source of rental income which can serve as the Groups stable source of cash flow and revenue.
Okura Holdings currently operates 17 pachinko halls in the Kyushu, Kanto, Kansai and Chugoku regions of Japan.