Case Studies


Due to our duty of confidentiality, we are unable to disclose detailed information. Thank you for your understanding.

13

CHALLENGE

We received a request from the founder of a small to medium sized enterprise to invest in real estate in Tokyo and participate in asset management.
The attractive real estate market of Tokyo is highly competitive and is difficult to get involved cheaply, but the client wished to purchase real estate in a great location in front of a station for an economical price.

SOLUTION

The person in charge utilized their real estate investment network to obtain information that creditors, financial institutions and real estate fund companies in the public market do not possess. With that information, their attention was drawn to a great business location in front of a station in the Tokyo metropolitan area, operated by a real estate fund that was close to bankruptcy.
The particular allure of this real estate for us was that, being a large-scale business in front of a station, it had a monthly car park that could fit over 100 cars.
The client had decided to invest only in residential real estate, but explained to the person in charge that this was a rare chance at a cheap price, with low risk thanks to the many tenants with low rents.
This was the client’s first investment in business facilities, so they were uncertain as to whether they could receive financing from their bank, but expressed that they would like to make the purchase if they could.
The person in charge continued detailed price negotiations with the seller, and soon received consent for financing.
Finally, thanks to the speed at which the consent for financing was obtained, the client was able to make a successful investment in real estate.

DATA

Category Commercial Building
Area Tokyo
Purchase Price 500,000,000 to 1,000,000,000 yen
Yield About 9%
Structure Steel Reinforced Concrete 11 -story
Year Built 2001
Features Business facilities with around 100 underground parking facilities located in front of a station in the Tokyo metropolitan area

RESULTS

The first expected profits were around 9%.
However, one year later, an offer to purchase the real estate was made by a very famous and high-listed company’s founder.
This person felt that they really wanted to purchase the property with mind to a future location for their own company, as it was a perfect place for business, right in front of a station.
At first, our client had no intention to sell at such an early phase, but as the buyer consented to our price and conditions, they decided to sell it. In the end, they achieved capital gains far above what they expected in such a short period. As the buyer was delighted with their purchase as well, this real estate investment ended up doubly positive.


14

CHALLENGE

We received a request for a real estate purchase for residential purposes near a station, from a Tokyo business that saw our website.
The client wished to make their investment for their own asset management.
The market for residential real estate in Tokyo is competitive, and it is hard to make a cheap purchase, so the client told us that they would also accept a real estate investment in Tokyo’s neighboring Chiba prefecture.

SOLUTION

The person in charge was drawn to a piece of residential real estate whose fund’s time limit was already up after making use of J-REIT.
This particular real estate had around 180 hotel-like single rooms already decked out with tables, washing machines, and beds, as well as an hot spring for public use.
When they looked into the problem areas with this real estate, which was still unsold even after its fund’s period was over, they found out that it hadn’t been sold because the number of empty rooms was high, it required dedicated hotel-like staff, and the cost of managing it was too high. The location was around 5 minutes’ walk from an important Chiba train line’s station, but despite this it was a relatively unpopular area among locals because it lacked a large supermarket and so on nearby.
The client came to the conclusion that if they had an investment strategy that would solve these problems, they could make an economical real estate investment without getting embroiled in price competition.
The person in charge, thinking of ways to solve the problems, continued price negotiations with the seller and soon obtained consent for financing.
In the end, as well as the person in charge receiving consent for financing from financial institutions they were familiar with, the client was able to successfully make an economical real estate investment without getting into a price war.

DATA

Category Residential and Commercial Building
Area Chiba
Purchase Price 1,000,000,000 to 1,500,000,000 yen
Yield About 10%
Structure Steel Reinforced Concrete 7 -story
Year Built 1991
Features Around 180 hotel-like single rooms already decked out with tables, washing machines, and beds

RESULTS

The initial expected profit was around 10%, and if every room was filled, gross profits of around 14% were expected.
Unmarried female workers in Japan are on the rise, and in this real estate, this demographic accounted for over half of the residents. The main appeal of the location, despite the lack of any large nearby supermarkets, was that it was close to a convenient station that allowed them to commute to Tokyo and that the building’s security was high; perfect for the single females living there who would often come home from work late at night. Also, a large part of the management costs was cut by the closing down of the building’s relatively unused hot spring facilities.
This is a typical example of turning the aspects of a real estate location that would be a turn-off for many investors into its strengths.


15

CHALLENGE

We received a request from a company manager who we previously known who wished to sell a piece of residential real estate in Tokyo for the highest price possible.
The client was also looking into a large-scale real estate purchase at the time, and as such they wished to sell the property quickly for cash to fund their next investment.
The property was around 10 minutes’ walk from a station in Tokyo with around 60 single rooms.
When the client had purchased this property, the building was old and it had many empty rooms so they managed to invest in it at a comparatively low price. However, they were concerned that it would be hard to be granted loans from financial institutions when reselling it to a regular real estate investor due to its high risk and small size. Additionally, if they were to sell the property on to an real estate fund that deals with real estate of over a billion yen, they feared that it would be problematic not only due to the age of the building but also because of its small scope for future value.

SOLUTION

The person in charge, through their own methods, came to learn of a highly listed domestic Japanese company in that would purchase it in cash for the purchase of asset management.
However, even after introducing the property to the business, the process of reaching a decision about the purchase took them a long time.
When the person in charge looked into the reasons for this, it became clear that the buyers considered it a valuable proposition, but also thought it risky due to the age of the property and the probability that the number of vacancies would increase.
For the buyers, it was probable that if they could raise the funds necessary to buy the property at a relatively low price and to renovate the building, they could increase the value of the property and decrease the risks.
As the client had originally purchased it cheaply, they came to the decision that even if they sold it for a slightly lower price than the market average, they would still make their desired capital gains.
Accordingly, the person in charge endeavored to stress the appeal of the property thanks to its low price and difficult investment earning rate of other residences of the same level.
In the end, the customer and buyer were both able to reach a successful transaction at a price they both agreed on.

DATA

Category Residential Building
Area Tokyo
Selling Price 500,000,000 to 1,000,000,000 yen
Yield About 8%
Structure Steel Reinforced Concrete 9 -story
Year Built 1988
Features Around 60 single rooms

RESULTS

Finally, this residence property was sold within the time period the client had wished for.
As a result, the client was able to make their much larger-scale real estate investment.
The buyer was also delighted with their purchase of a property that is hard to find at such a reasonable price.