Property Investment & Management
Property Investment and Management in Japan
Leveraging on the experience of property investment management in Japan through Capital Advisers Co., Ltd ("Capital Advisers"), our subsidiary, we have been providing property investment opportunities in Japan. Capital Advises' focus of asset class is residential properties and hotel projects. After Capital Advisers creates the investment fund, we act as its asset manager. In the case of hotel projects, Vista Hotel Management Ltd., group hotel management company, can act as hotel operator with the agreement of the hotel fund.
Investment / management of residential property
Our asset management portfolio of residential property consists of large and medium-sized high-quality properties, as well as small-sized stylish designer apartment properties.
As for the large and medium-sized residential properties, Capital Advisers operates those properties under the GCAP Fund and Stable Residential Fund. Both funds are joint projects with Grosvenor Fund Management Japan Limited, a subsidiary of the Grosvenor Group which is an international property development and investment group. Diamond Realty Management Inc, a wholly owned subsidiary of Mitsubishi Corporation, one of the largest trading houses in Japan, is also involved in Stable Residential Fund.
The properties of our small-sized residential funds are located in Tokyo metropolitan area, where the population is expected to grow. They are a collection of small flats and one project typically comprises of about 17 units of flats. They are also located at a walking distance from train stations, and the majority of tenants are single working men and women.
Investment / management of hotel property
As at 31 Dec 2010, we are the assets manager of nine hotels properties including one in which we wholly own. We also act as the hotel operator for eight hotels among them.
Hotel Operations
Vista Hotel Management Co., Ltd ("Vista Hotel Management") and other hotel operating subsidiaries in the group are in charge of the hotel operations business. Vista Hotel Management, which acts as the headquarters of hotel operations, provides a supporting function for each hotel operation. As at 31 December 2010, the group operates 13 hotels under "Hotel Vista" brand. These are limited service hotels targeting business travelers and tourists who require quality hotel accommodation.
New business
We are also focusing on new businesses for which we will be able to leverage our past experience. We are providing a solution service function to investors and other funds, including broker service for property We are also seeking opportunities being appointed as an asset manager of a property to rescue the fund. We are branching out into new assets classes such as office building and building with commercial space, leveraging on our experiences.
There are some cases where we are offered by third party hotel owners or a potential buyer to operate their hotels. We will seriously consider to expand our hotel operations business to share the profit with our clients.
We foresee that high net-worth investors are also looking for opportunities to purchase small sized properties with a view that the Japanese property market is bottoming out. Taking this into account, we are considering creating new funds for such high net-worth investors as a potential new business opportunity.