The Tanabe Building sits across the street from Sharp's former headquarters. A contract was signed for Sharp to purchase the property from NTT Urban Development for about 13.9 billion yen ($138 million), which is believed to be about 10% more than the original selling price.
The sale of the headquarters building and surrounding properties was part of a rehabilitation plan announced by Sharp last year. The headquarters was bought by furniture retailer Nitori Holdings in March. Sharp began serious negotiations with NTT Urban Development around last month after its effort to buy back the headquarters building from Nitori appeared to be going nowhere.
The Tanabe Building, which was occupied by Sharp's sales department, is expected to be turned into a center for development of cutting-edge technologies and new businesses.
Sharp was acquired by Taiwan's Hon Hai Precision Industry, better known as Foxconn, earlier this year. Foxconn Chairman Terry Gou reportedly told those close to him of the importance of Sharp's former Osaka headquarters campus. Sharp President Tai Jeng-wu -- who is also vice chairman of Foxconn -- personally led the effort to purchase the Tanabe Building. Amid rapid structural reforms under Foxconn, the deal is also seen as a move to boost the morale of Sharp employees.
Sharp said the deal will have a negligible impact on its earnings for the current fiscal year through March 2017.