Prospect To Sell $88M Stake in RE Firm

TOKYO-Long-time Japanese investor Curtis Freeze is divesting a hefty piece of his Prospect Group’s holdings in commercial real estate firm Shin-Nihon Tatemono Co., but will remain on board in anticipation of continued growth. As part of the deal, daVinci Advisors subsidiary Columbus KK is acquiring 11 million shares from Prospect, equivalent to 33% of the outstanding Shin-Nihon shares.

“We believe Shin-Nihon Tatemono has a bright future, and that its prospects will be enhanced in partnership with daVinci Advisors,” says Freeze, offering that the transaction “represents the best way to proactively support Shin-Nihon Tatemono and to deliver the most value to all shareholders.” Prospect Group controls just over 50% of the equity shares of Shin-Nihon, a Jasdaq-traded stock that attracted Freeze’s attention in 2006, leading to a $90-million commitment.

Freeze expresses satisfaction with the performance, citing a 147% gain in operating profits through September when compared to the first nine months of 2006. However, he says, “after careful review and with the full support of the management of Shin-Nihon Tatemono, Prospect concluded it has largely completed the contribution it can make at this stage of the company’s growth,” and felt a new partner would help advance Shin-Nihon’s platform.