Real Estate × Finance
Added value generated by the combination of real estate and finance
We manage REITs that place emphasis on “stability” and “growth” over the medium to long term by leveraging the know-how we have accumulated in both the real estate and financial sectors, boosting the synergistic effects of real estate fund management at the Company, Mizuho Realty One and Mizuho Real Estate Management.
・Utilizing sponsor Mizuho Trust & Banking’s broad Group customer base, information network and access to real estate information unique to trust banks
・Utilizing the unique network accumulated in the private fund business by the Mizuho Realty One Group that the investment corporations’ supporting company Mizuho Real Estate Management possesses (Note)
Note: Can collect unique information from real estate funds, financial institutions, construction companies/developers, companies, etc. in the real estate market
Strict Internal Control and Risk Management System and Stable Financial Base Unique to Financial Groups
・Conducting flexible and agile fund procurement and building a stable organization base as REITs having Mizuho Trust & Banking as the main sponsor
・Managing conflict-of-interest transactions, information, etc. based on strict rules unique to financial groups
Creation of Added Value by AM×FM Directly Linked to Value
Mizuho Realty One’s Facility Management Division is a facility manager (FM) team of experts that includes members with career backgrounds at general contractors and architect offices. Being able to utilize the structure of support from such a professional team in the management of REITs is not only our characteristic but also our strength.
The asset manager (AM) team at our Investment & Asset Management Divisions, too, includes members who are architectural experts. We believe that having such members with abundant financial, real estate and architectural know-how on both teams makes realization of value enhancement that fulfils the functions, design and cost feasible.
“Tenant satisfaction” and “maximization of unitholder value” will be realized by conducting management with constant collaboration between the asset manager (AM) and the facility manager (FM), which boasts expert knowledge, experience and skills in the tangible aspects (facilities, equipment, etc.) of buildings.
AM × FM
Stabilization and maximization of income × Optimization of costs
Realization of creation of added value optimal for tenants and unitholders
Case Examples of Initiatives
J Tower (One REIT, Inc.; Disposition: October 6, 2017)
The cafeteria in J Tower was renovated in light of the property’s location being one where there are only a few eating and drinking establishments in the surrounding area. With renovating the cafeteria to function also as a lounge enriching its functions as a common area and thereby achieving enhancement of tenant satisfaction and differentiation from surrounding buildings, these turned out to be initiatives that led to enhancement of occupancy rate.
The renovation was featured in the December 2015 issue of SHOTENKENCHIKU monthly magazine of store design/interior/commercial architecture in recognition of the “cozy lounge atmosphere” design concept.
Stoke Building Nagoya (One REIT, Inc.)
Renovation is underway as the first project of One REIT’s branding strategy (ONEST).
(As of January 2018)
Underlying our strength in “creating added value” is the “idea of manufacturing,” which is the basic stance of the investment corporations entrusting us with the management of their assets.
Story behind the Logo of the Investment Corporations
The two curving lines shaping the logo of the investment corporations represent a square scale, which is an important tool of temple and shrine carpenters and derived from the “idea of manufacturing” that is the basic stance of the investment corporations entrusting us with the management of their assets.
The two square scales facing one another resemble “real estate” and “finance” and show that “real estate” and “finance” are integrated elements for REITs.
In addition, the slit from the lower left to the upper right shows “continuous growth and development” and expresses the investment corporations’ will to contribute not only to the sustainable growth of unitholder value but also to sound growth and development of the real estate market by providing added value to various stakeholders, including society, through management of the assets of the investment corporations based on the “idea of manufacturing.”
Furthermore, the aspect ratio of the dimensions of the logo is actually 1:1.414 (√2), which has long been in common use in Japan as a silver ratio and incorporated also in Japanese architectural structures, such as Horyuji (Horyu Temple).
The silver ratio is incorporated even in the design of the logo to make it a design portraying the “idea of manufacturing” that is the basic stance of the investment corporations and also a design highlighting the “O” in “One.”
Vision and Strategy
One REIT will create added value and provide fruitfulness not only to unitholders but also to various stakeholders and society through the viewpoint of looking ahead of the market along with the knowledge accumulated to date as well as advanced financial solutions together with the asset management company and the sponsor, and aim to contribute to the sound growth and development of the real estate market as a unique investment corporation.
One REIT will invest in “Middle-sized Office” (Note), for which the market scale of buildings is relatively large and holds abundant acquisition opportunity as well as those in which stable rental demand is expected over the medium to long term and that are capable of sufficiently utilizing the knowledge and experience of the asset management company, as the core investment target with an aim to secure stable profits and achieve steady growth of assets under management over the medium to long term.
Note: “Middle-sized Office” refers to a category of office building with a total floor area within the range of 3,300 m² (approximately 1,000 tsubos) to 33,000 m² (approximately 10,000 tsubos) as well as medium or medium- to large-scale office buildings with certain specifications that satisfy the needs of tenants.
3 Characteristics of “Middle-sized Office”
1. Abundant stock
2. High liquidity in transactions
3. Stable average occupancy rate and unit rent
Creation of Buildings Chosen by Tenants
One REIT intends to contribute to the improvement and development of existing building stock by defining specifications to realize “safety,” “comfortability” and “convenience” for tenants under the name “ONEST” as well as spreading it widely throughout the market.
Vision and Strategy
One Private REIT will aim to maximize unitholder value with the goal to achieve sustainable growth while securing long-term, stable profits from a residential portfolio that is diversified in terms of geographic area by fully utilizing the various support from sponsor Mizuho Trust & Banking, along with the comprehensive strengths of our support, which is backed by a track record in management of the assets of a listed REIT, and the support from supporting companies Mizuho Realty One and Mizuho Real Estate Management.
One Private REIT will invest in rental housing and accommodation facilities (Note), mainly rental housing, which is less susceptible to economic fluctuations than other asset types.
Note: “Accommodation facilities” refers to student apartments, company dorms, healthcare facilities, hotels, and other real estate for residential purposes other than purely rental housing.
Concept behind CASSIA
“CASSIA” is coined from “casa,” which is Spanish for house, and “SIA,” which is the former name of our parent company Mizuho Realty One.
The logo depicts the initial “C” in the motif of windows.