Mitsui Fudosan Co.'s plan to launch a tender offer for Tokyo Dome Corp. comes as the property developer eyes a new brand strategy by using its expertise in urban development and commercial facility management, sources said.
Mitsui Fudosan announced its plans on Friday to purchase all of Tokyo Dome's outstanding shares for 120.5 billion yen. The company aims to enter the stadium management business in a bid to develop the operation as its new source of revenue, they said.
Mitsui Fudosan cited the about 130,000-square-meter land in the center of Tokyo as its reason for acquiring the ballpark operator. This piece of property would create significant benefits given its location and development scale.
The Tokyo Dome, which was completed in 1988 and became the nation's first enclosed stadium, is used as a venue for concerts and large-scale events as well as for professional baseball games.
Tokyo Dome City, which includes the stadium, an amusement park and a hot spring facility, has been attracting about 40 million visitors a year.
Though the large-scale facility was hit hard amid the spread of the novel coronavirus, Mitsui Fudosan said it recognizes that the value and demand for the location remain strong.
Mitsui Fudosan has extensive experience working on redevelopment projects in city centers. In 2018, the company developed the Tokyo Midtown Hibiya, a large commercial complex that also houses business offices, in Chiyoda Ward, Tokyo. The firm also opened a shopping complex with a park in Shibuya Ward, Tokyo, in July, attracting many young people.
In addition to utilizing its expertise, the company hopes to enhance the brand power of the Tokyo Dome and related facilities in cooperation with the Yomiuri Giants, pro baseball team which has long been based at Tokyo Dome.
Mitsui Fudosan asked the Yomiuri Shimbun Holdings for capital investment, with the plan to sell 20% of the shares to the Yomiuri Shimbun, the owner of the Giants, after completing the acquisition.
"We believe it is very important to formulate and implement growth and brand strategies, and we are focusing on collaborating with the Yomiuri Giants," a Mitsui Fudosan's official said.
For its successful takeover bid, attention is focused on how Oasis Management Co. would move as the Hong Kong-based investment fund management firm owns nearly 10% of the Tokyo Dome shares.
In October, Oasis demanded the dismissal of Tokyo Dome President and Representative Director Tsutomu Nagaoka and two other directors for not fully utilizing their properties, among other reasons.
Tokyo Dome, however, has been at odds with Oasis, arguing that the three have produced satisfactory results, helping to improve corporate value and strengthen corporate governance.
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