Sanden has agreed to sell its Sanden Forest/Akagi manufacturing complex in Maebashi, Gunma Prefecture, to Industrial & Infrastructure Fund Investment Corporation (IIF) for ¥8.0bn, more than 80% above the site's ¥4.4bn book value. The board approved the deal on August 7 and the two sides signed the sale contract on August 17, with property delivery and payment both due October 1.
Because the price sits well above book value, Sanden expects to book an extraordinary gain of about ¥3.3bn in the fourth quarter of the fiscal year ending December 2026. The company says it will put the proceeds toward reducing interest-bearing debt, investing in competitiveness and covering working capital, though those are stated intentions rather than completed spending.
The catch, and the point, is that Sanden is not actually leaving. Under a sale-and-leaseback structure, it signed a 15-year fixed-term lease running through September 2041 and will keep using the plant for production and its existing environmental programs without interruption.
| Metric | Value |
|---|---|
| Sale price | ¥8.0bn |
| Book value | ¥4.4bn |
| Expected extraordinary gain (Q4, year to December 2026) | ~¥3.3bn |
| Buyer's appraisal value | ¥12.2bn |
| Implied unrealized gain for buyer | ¥4.2bn (+52.5%) |
| NOI yield / post-depreciation NOI yield | 7.8% / 6.6% |
| Leaseback term | 15 years, through September 2041 |
IIF's own disclosure fills in the buyer's side of the ledger: the fund is paying ¥8,000mn against an appraised value of ¥12,200mn, an implied unrealized gain of ¥4,200mn, or 52.5%. It expects a 7.8% net operating income yield and 6.6% after depreciation, with rent indexed to core CPI every three years on an upside-only basis, meaning it can rise but never falls below the prior rate. A second tenant, SDRS, also occupies part of the site under a separate lease.
The deal is a straightforward trade: Sanden turns a factory it already owns into cash and a CPI-linked rent obligation that can only rise, while IIF picks up a fully-let industrial asset at a discount to appraisal with built-in inflation protection.