SoftBank’s Fortress to put $570 million in Japanese rental firm Leoplace21: Nikkei

FILE PHOTO: The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017. REUTERS/Issei Kato

U.S. investment fund Fortress Investment Group will likely extend about 60 billion yen ($570 million) to cash-strapped apartment rental firm Leopalace21 Corp 8848.T to shore up its balance sheet, Nikkei daily reported, citing sources familiar with the matter.

The investment by Japan’s SoftBank Group-owned 9984.T Fortress will include both cash and debt, the report said on Wednesday.

Leopalace21’s liabilities exceeded assets by 11.8 billion yen as of June, it said.

The company said in a statement that it is discussing the reported matter in its board meeting on Wednesday.

Leopalace21 has been suffering stagnant apartment occupancy rates stemming from its construction scandal as well as weaker demand due to the coronavirus outbreak, the report added.

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