Trust Recovery Growth Vitalization - Marubeni

Strategy by Business Segment
Development & Construction Division
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Maximizing profits and developing new commercial assets
The division first started condominium sales operations in the 1960s. In the decades
since, the division has constructed a framework that integrates and manages everything
from the purchase of land to property construction, management and upkeep of the
buildings. In fact, the division now boasts capabilities and experience that, at the very
least, put it on an equal footing with dedicated property developers. As we look ahead,
we intend to use these advantages to devise structures that will enable the
division to raise its business volume even more. In conjunction with this goal,
we are committed to helping to achieve the objectives of the “V” PLAN
through actions that will include extending the division’s residential housing
operations in China beyond the Shanghai region, as well as forays into REIT
and private subscription funds and other new business fields.
Norihiro Shimizu
Corporate Vice President, COO
Division Strategies and Strengths
This division has developed approximately 70,000 units to date.
Equipped with experienced staff and product planning capabilities
comparable to even that of dedicated property developers,
the condominium business focuses on development particularly
in the Tokyo Metropolitan Area, and the Kinki and Nagoya
regions. The division also incorporates a number of companies,
including Marubeni Real Estate Sales Co., Ltd. (sales), Benny
Estate Service Co., Ltd. (property management), and Tsunagu
Network Communications, Inc. (IT promotion and ISP business
targeting condominium developments). An integrated presence
across all aspects of condominium development, from planning
to sales and management, also counts as one of Marubeni’s
strengths. Going forward, Marubeni plans to aggressively
develop properties not only in highly convenient urban areas
but also in outlying areas expected to demonstrate demand.
Marubeni also participates in the residential property business
outside of Japan. As the first Japanese real estate developer
in the Shanghai market, Marubeni has sold approximately
2,600 condominiums and townhouses to date. In 2005,
Marubeni plans to carry out detached housing projects encompassing
around 220 units.
As the housing business is the field in which the division
specializes, Marubeni is committed to further strengthening it
as a pillar of sustained earnings.
Furthermore, one of the key themes of the “V” PLAN is
developing new sources of earnings in addition to the housing
business. The Urban Development Unit, established in April
2003, engages in the rental and subleasing business and
aggressively pursues other avenues of growth, including the
development of properties that can be sold to investors and
generate fee-based revenue. Leveraging this approach, the unit
is achieving steady earnings growth.
Marubeni has also invested in Japan REIT Advisors Co.,
Ltd., a real estate investment trust management firm. United
Urban Investment Corporation (UUI), which was formed by
Japan REIT Advisors, was listed on the Tokyo Stock Exchange
in December 2003, and carried out its second round of funding
through a public subscription in December 2004, thereby
expanding its total assets.
Through these and other proactive initiatives, Marubeni
remains committed to cultivating promising businesses as new
earnings pillars in addition to strengthening the housing business.