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【PARK24 Co., Ltd. 】Park24 Added Properties to The Second Securitization Scheme

Park24 Co., Ltd. (the Company), Japan's largest operator of hourly parking facilities under the "Times" brand name, managing 5,278 facilities (82,310 parking spaces) as of end of June 2004, has removed from its balance sheet ¥2.4 billion worth of the assets used for its Times operations, under a securitization package arranged by Merrill Lynch Japan Securities Co., Ltd. This is the addition of assets to the second securitization (31.2KB), which was implemented in September 2003.

Outline of the Securitization

1. Transference of assets
(1) About the scheme
  The scheme implemented in September 2003 allows for the adding to the Times assets subject to securitization within a specified period of two years, up to a set maximum value of ¥15 billion. The Company and Mitsubishi Trust & Banking Corp. signed a real estate trust contract with respect to three additional properties, and the added trust beneficiary rights to be transferred to the SPC.
(2) Operation after the securitization
  The Company and Mitsubishi Trust & Banking Corp. signed a master lease contract and a real estate management service consignment contract. The Company continues to operate the Times facilities subject to the securitization.
(3) Recipient party of the beneficiary rights and the borrower
  TFP2 Ltd. (Japan-registered SPC)
(4) Date for transference
  July 30, 2004
2. Objectives of Securitization
  The Company aims to:
1. Expand its range of methods for acquisition of land for Times operations
2. Reduce contract cancellation rate
3. Conduct operations with minimal working capital
For these reasons, the use of an asset securitization scheme, that is, the removal of assets from the Company's balance sheet, will allow the Company to safely purchase land properties for the expansion of our parking lot operations, thereby optimizing our business portfolio
3. Securitized Properties
(1) Properties subject to securitization
  Three real estate properties including Times Dotonbori
(2) Agreed Asset Value
  ¥2.4 billion
4. Impact on Earnings
  The Company does not expect changes in the forecasted earnings due to this securitization.

Download the press release for the second securitization scheme in Sep. 2003 in PDF file HERE (31.2KB)

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