Pre-marketing in Tokyo was underway at press time for a 90 billion ($851 million) lease-backed transaction for Japanese electronics firm NEC Corp., which recently announced that it was selling its headquarters building in Tokyo.

NEC has entrusted its building to Sumitomo Trust & Banking Co., which will issue beneficiary certificates totaling 52 billion that will serve as collateral for the investors. Since there is no mortgage over the property as in a typical commercial mortgage-backed securitization, investors only have an interest in the trust and not in the property itself. Daiwa SB Capital Markets is arranging the transaction, while Nikko Salomon Smith Barney and Morgan Stanley Dean Witter are co-managers.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.