Japanese court investigating 90 billion MNT purchase by Avar LLC

By B.Tungalag

 Avar LLC, registered in Mongolia, has been making headlines in Japanese media. Avar Limited Liability Company won a recent auction for the headquarters of the General Association of Korean Residents in Chiyoda district, Japan (known as Chongryon) with a bid of 5.01 billion JPY (90 billion MNT).

Limited information available about Avar LLC

Mongolian companies rarely purchase immovable property in Japan, and Japanese concerns have been raised about connections to North Korea. Japanese authorities want to learn more about Avar LLC, its influence in Mongolia, and whether it can fully fund its purchase of the building.

Little information about Avar LLC is available, aside from its registration in Mongolia. One Japanese journalist of Japanese called Mongolia to speak with professional sumo wrestler Kyokushuzan Batbayar, and he replied, “There is no individual with that sum of money in Mongolia.” The lack of information about the buyer means that the court will need more time to determine whether or not they will proceed with the purchase. As a result, the Japanese court has postponed a decision to approve the sale of the General Association of Korean Residents in Tokyo headquarters to Avar LLC.

According to reports by some Japanese websites, there is speculation that Avar LLC is buying the building on behalf of North-Korea.  Other Japanese analysts believe that there may be political involvement behind the purchase.

The building first went on auction in March 2013 and a Kagoshima-based Buddhist priest placed the winning bid of 4.5 billion yen. The priest, who had close ties with officials in North Korea, failed to come up with the money by the deadline.

 President of Avar LLC: It is just a business

The President of Avar LLC spoke about the purchase raising Japanese and Mongolian interest. According to his statement, Avar LLC was established nine months ago, and over the past several months, drafted a project to participate in the auction in Japan. He said, “We have no ties with any government bodies and it is just business, like we informed Japanese press and media.”

The founder of Avar LLC, Ch.Erdenebat, is the brother of Mongolian celebrity Ch.Michidmaa. There is further speculation that professional sumo wrestler Asashoryu Dagvadorj and his brother, Member of Parliament D.Sumiyabazar, might be involved in the transaction.

Here is a brief interview with President of Avar LLC, Ch.Erdenebat.       

 -The Japanese court has delayed the decision to proceed with the sale of the Chongryon site. Why has the court decision been postponed for the building you’ve purchased at auction?

 -The court decision is delayed because of various reports related to the auction by the press and media of Japan and Mongolia. The court decision was supposed to be issued last Tuesday. But a court decision will be issued soon.

-Your company has not been active before this? How did you participate in the auction?    

 -Our company has not been established for a long time. It is true that we have not been active. The company participated in the auction via a Japanese law firm. It does not matter how active the company is to participate in the auction.

-Your obliged 5.01 billion JPY is a very large amount of money. How did you organize the funds?

 -We will gather it through a foreign investment fund. After the court has made its decision I will give you specific information.

-According to reports by some Japanese press, Member of the State Great Khural D.Sumiyabazar and professional sumo wrestler and 68th grand champion Asashoryu D.Dagvadorj are connected to the purchase, or the Japanese government is behind this to bring back its citizens who were kidnapped in North Korea.

 -There are no links with any government bodies in Mongolia, Japan, North Korea or South Korea. It is just a business. Member of the State Great Khural D.Sumiyabazar is the husband of my sister Ch.Michidmaa. That is why people say that D.Sumiyabazar is involved in the purchase.

-Is Asashoryu D.Dagvadorj connected to the purchase?




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Posted by on Oct 28 2013. Filed under Community, Domestic. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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