Tag Archives: Japan

Singapore Property Giant bought Japanese commercial properties for almost 50B yen

CapitaLand, through its mall business CapitaLand Mall Asia, acquire a portfolio of four office and retail properties in Japan’s Greater Tokyo Area, for about 51 billion yen (S$636.3 million) including transaction costs.

CapitaLand currently also owns and manages four shopping malls in Japan – namely Olinas Mall, Vivit Minami-Funabashi and La Park Mizue in Tokyo; as well as Coop Kobe Nishinomiya-Higashi in Kobe.

The Ascott Ltd, CapitaLand’s wholly owned serviced residence arm, owns and manages 46 properties with more than 3,500 apartment units in Japan. The group’s Japan portfolio also includes a 20 per cent stake in an office building – the Shinjuku Front Tower.

The acquisition will strengthen its foothold in Greater Tokyo, the world’s most populous metropolis, and increase the group’s total asset size in Japan to about S$2.5 billion.

The portfolio comprises two office buildings in Yokohama, Yokohama Blue Avenue and Sun Hamada; one office building in Tokyo, the Kokugikan Front; and, one shopping mall in Saitama, the Seiyu & Sundrug.

The long-term forecast of Greater Tokyo’s office market remains positive. The vacancies in central Tokyo expected to stay below 5 per cent through to 2025.

The Seiyu & Sundrug has a gross floor area (GFA) of close to 400,000 square feet, thus growing CapitaLand’s retail footprint in Japan by about 25 per cent to over 2 million sqft in GFA. Seiyu & Sundrug, in Saitama Prefecture, is the largest suburban mall within a three-kilometre radius.

Advertisements

JR Kyushu investing in South East Asia real estate

JR Kyushu, which is benefiting from a tourism boom with record numbers of visitors to Japan, gets most of its profits from real estate and station buildings. The company said in its mid-term plan it aims to spend 80 billion yen over three years on some sectors that will help boost sales from non-rail sources as the population on the island declines.

It was seeking to raise as much as 416 billion yen in an IPO, and planned to reduce its reliance on Japan by investing in residential and office properties in Southeast Asia.

Investing in Southeast Asia will be a first for the company, which owns five restaurants in China. Japan makes up almost all of the company’s revenue, according to data compiled by Bloomberg. In addition to real estate, the company also operates restaurants in Shanghai and Tokyo. JR Central, the nation’s busiest bullet train operator, also has a restaurant in London.

According to the Chairman, Southeast Asia offers huge growth potential for JR Kyushu. JR Kyushu plans to expand its non-rail sales to more than 62 percent of revenue by March 2019, from 57.5 percent in the year ended March 2012, according to the mid-term plan. Sales are forecast to increase to 400 billion yen in the same period, from 333 billion yen seven years earlier.

The company expects at least as many tourists to Kyushu this year as the 2.8 million who visited last year, as the island recovers from the earthquakes in Kumamoto prefecture in April, Karaike said.

“Foreign visitors from Asia used to come to Japan for the purpose of massive shopping, but their interest is shifting to culture, history, dining, and other aspects that are only available in Japan,” the executive said.

Based in Fukuoka City, about 890 kilometers (550 miles) southwest of Tokyo, the JR Kyushu is benefiting from record overseas visitors to Japan, spurring demand for its hotels, shops and restaurants, as well as train travel. Visitors to Kyushu from overseas reached 2.8 million last year, more than doubling from 1.3 million two years earlier, according to the transport ministry.

https://www.bloomberg.com/news/articles/2016-10-11/ipo-candidate-jr-kyushu-scouts-property-deals-in-southeast-asia

Japan to solve the low birth dilemma with immigration

In a recent news article, the current government under Japanese Prime Minister Shinzo Abe seems to be considering policies to increase the intake of foreign workforce into Japan. As Japan is undergoing a long term concern over its demographics and population due to low birth rate. To prevent the country from falling to below 100 million from the current 127 million, immigration is often touted to be the solution in the ageing society. However the relatively closed society of Japan has been well known to be apprehensive towards bringing in more foreigners. However with the current expansion of foreign tourism, some attitudes towards other nationalities may have changed. The lawmakers in the cabinet  said in an interview that the foreign workforce may double. The government may introduce a new visa category for sectors affecting from labour shortages, and expand a foreign trainee policy where workers are allowed entry for a limited period (from 3 years to 5 years). Foreigners currently working in Japan under this scheme ranges within a figure not exceeding 200K. Tech workers from India and Vietnam are among some of the target groups.

Together with the upcoming enthusiasm for the Olympics in 2020, this may be good news for property owners in the country as demand for rental properties may increase. 

Airbnb in Japan

The world’s third most valuable startup is drumming support in the world’s third largest economy in the latest round of debate on regulation. The tourism boom in the country results in shortage in hotel room availability and Airbnb is positioning itself as offering a significant social value proposition in the situation, by supporting tourism and benefit the communities in which they operate by directly benefiting the hosts of the properties. Listing in Japan has balloted to 35K, hosting 1.38m guests. The weakened Yen together with relaxing of visa requirements pushed inbound tourists to a record of 19.7m in 2015 from 8.4m in 2012. The hotel occupancy in Tokyo is tighter than Paris, Hong Kong and New York. It is estimated that the number will hit 35m in 2020.

Asia’s millionaires will outpace the Americans in number and wealth

In a report by Capgemini Financial Services and RBC Wealth Management, the number of millionaires in Asia is expected to surpass that in North America by this year. By 2015, the wealth that these Asian millionaires hold will also overtake that of their North American counterparts as predicted in the same report.

In terms of investable wealth, Asians hold US$14.2 trillion, and North Americans US$14.9 trillion. Together, they make up just over half of the world’s US$52.6 trillion of HNWI wealth.

But Asia is growing at a faster pace. That is one of the key takeaways from the 2014 World Wealth Report, said Claire Sauvanaud, vice-president and senior account executive for Capgemini Asia Pacific.

The two regions are already about neck and neck in the number of such high net worth individuals (HNWIs): Asia-Pacific has 4.32 million of them and North America 4.33 million. Together, they account for almost two thirds of the 13.7 million HNWIs in the world.

In 2013, the numbers of the world’s wealthy grew the most in the US and Japan. The US remains the country with the most number of HNWIs (4M) in the world, while Japan is second (2.3M). SIngapore’s HNWI population grew 4.5% to reach 105K people.

Wealth is concentrated at the very top. Among the 13.7M HWNIs, a mear 0.9% have $30M or more. This group holds a third of the HNWI wealth. The wealthy seek to make an impact to their societies primarily via health, education and children’s causes.