Hong Kong listed Okura Holdings, an operator of 18 pachinko parlors in Japan, has announced an Acquisition Agreement to purchase one of the pachinko halls it currently operates in Nagasaki City.
The deal will see Okura pay a total of ¥1.48 billion (HK$103.4 million), covering the associated land, building and taxes. The company has previously paid current owner Orix Corporation annual rent of ¥288 million.
In a filing to the Hong Kong Stock Exchange, Okura – whose pachinko operations are based in the Kyushu, Kanto, Kansai and Chugoku regions in Japan – said, “The Directors consider that the Acquisition provides an excellent opportunity for the Group to (i) reduce ongoing rental payments for the Building, (ii) eliminate the potential risks of the Group failing to renew the existing lease for the Hall Premises upon its expiry in the future, (iii) avoid the possible increase in rents for the hall premises upon the expiry of the existing lease agreement, and (iv) generate rental income from the leasing of the building other than the hall premises as and when the Group sees fit.”
Okura, which established its first pachinko hall in 1968, ranks 68th out of more than 3,500 pachinko hall operators in Japan for the number of halls run. Around 95% of Japan’s pachinko operators run less than 10 halls.
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