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Investment and Asset Management

Investment

The Real Estate Investment Division encompasses two operational areas:
Acquisitions, where we provide a comprehensive range of services for designing, researching and establishing joint ventures (funds) - evidence of the trust established with investors; and
Real Estate Consulting, where we look beyond real estate as a passive asset to provide specific strategies for making it a top priority in our clients’ business management plans. The organic, intricate links between these operational areas is what allows Kenedix to provide its clients with high-quality, high-precision services.

Acquisitions

Acquisition of real estate for investment is a complex operation encompassing many steps. The first step is to formulate an investment strategy matching the needs of client investors. This is followed by the creation of an investment scheme, analysis of the investment and economic environment, due diligence and selection of the actual property, analysis of investment returns, and support for and raising of funds. Next comes the actual investment, formulation of a reinvestment strategy at the end of the investment period, and sale of the property.

The special feature of this operation is that the value of real estate is appraised mainly using the discounted cash flow (DCF) method. This means that we calculate the present net value based on estimated future cash flows with reference to rate trends in the real estate leasing market. The value of real estate is not determined solely on the basis of an increase in capital value. Instead, based on the position that we do not intend to hold real estate in perpetuity, we carry out valuations using the DCF method after formulating an exit strategy (trade sale or reinvestment, for example) at the point we decide to invest.

We thus devote our energies to earning the trust of investors, our clients, by evaluating the constantly shifting real estate market to maximize the return on investment.

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Real Estate Consulting

Just as it is for an individual, real estate is one of the most important assets a company can own. This is not just in terms of the asset's value itself, but also because the real estate is used as a company's operating base, production base or source of income. For companies owning real estate or considering a real estate acquisition, it can form an important element of their business strategy. With real estate strategy positioned as a top priority for management, we offer specific solutions based on a shared understanding of the management issues involved.

ポートフォリオの策定

One of the services most needed by owners of real estate in Japan is consulting services for optimizing the performance of a portfolio. We create and propose optimal portfolios by leveraging our wealth of experience and success in the U.S. real estate market. Our solutions respond to the diverse needs of real estate owners, some of whom, for example, may have many aging assets; assets of a particular type or concentrated in particular locales, or wish to start acquiring real estate.

不動産戦略の策定

For companies with management concerns ? whether to sell or acquire real estate, for instance ? we perform comparative studies of not only simple sales or acquisitions, but also conversion and property transfer. We look at the effect real estate disposals or investments could have on corporate finances, taking into consideration the consequences of future taxation and accounting amendments. Using specific figures, we propose the most effective solution.