Nomura to Raise 53 Billion Yen Selling Stake in Real Estate Unit

Nomura Holdings Inc. (8604), Japan’s biggest brokerage, will sell a stake in its real estate unit for about 53 billion yen ($572 million) to concentrate on areas where it can leverage strengths amid stricter banking rules.

The investment bank will reduce its holding in Nomura Real Estate Holdings Inc. (3231) to 36 percent from 51 percent through a secondary offering by its Nomura Land and Building Co. unit, Nomura said in a statement to the Tokyo Stock Exchange today.

Nomura is among global financial firms that are selling assets to raise cash and focus on their banking operations as regulators tighten capital and liquidity requirements. The Tokyo-based bank’s sale of Annington Homes Ltd., a U.K. housing estate company, helped net income climb 13 percent to 20.1 billion yen in the quarter ended December.

Shares of Nomura rose 1.7 percent to 541 yen at 1:11 p.m. in Tokyo. Nomura Real Estate rose 2.6 percent to 1,708 yen. Based on the closing price yesterday, the 32 million shares to be offered, including an over-allotment, are valued at 53.3 billion yen. The stake would fall below 36 percent if the extra shares are sold.

Paring the stake will make Nomura Real Estate an affiliate rather than a subsidiary, according to the statement. The firms will “continue to pursue growth through expanding their respective businesses and collaborating together,” Nomura said.

The sale will be priced on March 12 or 13, it said.

To contact the reporter on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net

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