Mitsubishi Motors Corp. and trading house Mitsubishi Corp. will sell the Shinagawa Mitsubishi Building in Tokyo's Minato Ward and its land to the Morgan Stanley group of the United States for a total of 140 billion yen, the companies said on Friday, according to Kyodo News.

Mitsubishi Motors reportedly said it will gain 30 billion yen from the deal and use the proceeds to improve its cash flow in line with its business revitalisation plan. The automaker is reeling from the effects of multiple vehicle defect coverup scandals.

Mitsubishi Motors and Mitsubishi Corp. jointly own the land on which the building stands. Mitsubishi Corp. possesses the building itself and Mitsubishi Motors is leasing part of the building as its head office.

For the deal due to be completed at the end of January, Mitsubishi Motors and Mitsubishi Corp. will sell their trust beneficiary rights pertaining to the building and the land. Mitsubishi Corp. will obtain about 110 billion yen from the deal.

After the deal, Mitsubishi Motors will then lease building space from the Morgan Stanley group, Kyodo News added.