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Merger of JR East Group Companies

East Japan Railway Company

June 9, 2004

JR East Group is to merge four existing group companies into two companies effective October 1, 2004, as part of the ongoing consolidation and reorganization of the station facility management business.

  • JR East Group is consolidating and reorganizing the station building businesses with the following objectives:
    · Enhancing sales capability in tenant leasing and other areas
    · Increasing business efficiency through low-cost operation
  • The two upcoming mergers will involve the following four companies (underlined names are the surviving companies):
    · Tokki Co., Ltd. with Echigo Station Development Co., Ltd.
    · Sendai Terminal Building Co., Ltd. with Yamagata Terminal Building Co., Ltd.
  • The effective date of both mergers will be October 1, 2004.
  • The mergers will lead to further enhanced sales capability and lower operating costs, which together will result in greater earning power. In this way, we intend to make our station buildings more attractive, both to our customers in these regions and to our tenants, who are the Group's business partners.
  • Tokki Co., Ltd. is operating station buildings at Niigata Station, while Echigo Station Development Co., Ltd. is operating station buildings at Nagaoka, Niigata, and Echigo-Yuzawa Station. The upcoming merger will unify the business management of buildings at these stations, which are all located in Niigata Prefecture, in order to enhance sales capability. In particular, the station buildings at Niigata Station presently belong to the two companies, however by placing them under centralized management, the Group intends to revitalize the station facilities as a whole.
  • The merger of Sendai Terminal Building Co., Ltd. and Yamagata Terminal Building Co., Ltd. will be the first time that JR East has consolidated companies in the hotel business (the respective companies operate a Hotel Metropolitan at their stations.)
  • JR East will continue to consolidate and reorganize its operation of station buildings in the future to improve the efficiency of Group management resources, seeking to revitalize the stations and environs and to achieve increased competitiveness in operating station buildings.
<Reference Information>
Profiles of Merging Companies
Company name Tokki Co., Ltd. Echigo Station Development Co., Ltd.
Surviving company Superseded company
Location 1-1-1 Hanazono, Niigata-shi, Niigata Prefecture 1-611-1 Jonai-cho, Nagaoka-shi, Niigata Prefecture
Station building names Patio Higashi and Patio Bandai Saison de Nagaoka, Saison de Niigata and Plateau Yuzawa
Capitalization 400 million yen 208 million yen
Station building sales 9.8 billion yen
(including company-owned stores)
9.4 billion yen
Post-merger capitalization 400 million yen
Post-merger name Tokki Co., Ltd.
Company name Sendai Terminal Building Co., Ltd. Yamagata Terminal Building Co., Ltd.
Surviving company Superseded company
Location 1-1-1 Chuo, Aoba-ku, Sendai-shi, Miyagi Prefecture 1-1-1 Kasumi-cho, Yamagata-shi, Yamagata Prefecture
Station building names S-Pal
(at Sendai, Fukushima and Koriyama)
Metro Plaza
Capitalization 1.8 billion yen 5 billion yen
Station building sales 31.6 billion yen 3.9 billion yen
Post-merger capitalization 1.8 billion yen
Post-merger name Sendai Terminal Building Co., Ltd.
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