Cancellation of the Large-Scale Logistics Facility Construction Plan and Recognition of an Extraordinary Loss
TOHBU NETWORK CO.,LTD. (filing company)
Tohbu Komaki Logistics Center (tentative name), Kawachiya-Shinden, Komaki, Aichi Prefecture; site area: 21,209 m² (6,415 tsubo)
Changes in the business environment resulting from the prolonged development schedule due to difficulties in selecting a partner, a significant increase in construction costs due to soaring construction material prices and labor costs, and the cancellation of the planned tenant's project.
¥135.186 million (recognized as an extraordinary loss; additional costs and other expenses associated with cancelling the plan are currently under review)
Second quarter of the fiscal year ending March 2027
The impact on results for the fiscal year is currently under review. The Company will promptly disclose any matters that should be made public.
Related procedures
Obtaining development permission in an urbanization control area and obtaining certification for a coordinated plan under the Act on Advancement of Integrated and Efficient Distribution, among other matters
The construction plan will be cancelled. The Company will review the additional costs and other expenses associated with cancelling the plan and promptly disclose any matters that should be made public.
The Company will promptly disclose any matters that should be made public.
| Item | Details |
|---|---|
| Event name | Cancellation of the Large-Scale Logistics Facility Construction Plan and Recognition of an Extraordinary Loss |
| Date of occurrence | 13 November 2026 (the date on which the Board of Directors resolved to cancel the plan) |
| Subject Entity | TOHBU NETWORK CO.,LTD. (filing company) |
| Target Locations / Products | Tohbu Komaki Logistics Center (tentative name), Kawachiya-Shinden, Komaki, Aichi Prefecture; site area: 21,209 m² (6,415 tsubo) |
| Cause | Changes in the business environment resulting from the prolonged development schedule due to difficulties in selecting a partner, a significant increase in construction costs due to soaring construction material prices and labor costs, and the cancellation of the planned tenant's project. |
| Amount of Impact on Business Performance | ¥135.186 million (recognized as an extraordinary loss; additional costs and other expenses associated with cancelling the plan are currently under review) |
| Accounting period in which recognized | Second quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | The impact on results for the fiscal year is currently under review. The Company will promptly disclose any matters that should be made public. |
| Type of litigation or proceeding | Obtaining development permission in an urbanization control area and obtaining certification for a coordinated plan under the Act on Advancement of Integrated and Efficient Distribution, among other matters |
| Outlook | The construction plan will be cancelled. The Company will review the additional costs and other expenses associated with cancelling the plan and promptly disclose any matters that should be made public. |
| Planned follow-up disclosure | The Company will promptly disclose any matters that should be made public. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The business environment changed due to the prolonged development schedule resulting from difficulties in selecting a partner, a significant increase in construction costs due to soaring construction material prices and labor costs, and the cancellation of the planned tenant's project. Following a reconsideration of the certainty of investment recovery, project profitability and the allocation of management resources going forward, the Company determined that proceeding with the plan would not contribute to sustainable growth or the enhancement of corporate value over the medium to long term.