2008-02-19yahoo.com

Citigroup, which has been raising funds since taking a huge hit from the U.S. subprime mortgage meltdown, has sold its Japan headquarters to rival Morgan Stanley in a deal reportedly worth US $445 million.

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Citigroup said in a statement on Tuesday that it had completed the sale-and-lease back deal of the Citigroup Center in Tokyo's Shinagawa district as part of efforts to improve Citibank Japan's balance sheet and cut risk of holding property assets.

There is a whiff of desperation to this deal, which continues in a trend of selling-off-the-furniture that has been going on for months now at Citigroup. Not only is Citigroup now going to be paying rent to their competitor, but this comes just as real estate values in Japan have risen for the first time in 19 years.


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