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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has started, through Mitsui & Co., Realty Management Ltd. ("Mitsui & Co. Realty Management", Head Office: Tokyo, President: Hidehito Okinaka, a wholly owned subsidiary of Mitsui), the management of a private REIT, Mitsui & Co., Private REIT Inc. This is the first REIT handled by Mitsui for institutional investors (for professional investors).
Mitsui & Co., Private REIT Inc. is a diversified private REIT with its investment targeted for office buildings, commercial facilities (such as logistics facilities and data centers), housing, and other types of property. Initially it is expected to hold assets of approximately ¥32 billion. Mitsui & Co., Private REIT Inc.'s first targeted assets will include Shinagawa Seaside Park Tower, which it will jointly own with MIRAI Corporation, a listed REIT managed by Mitsui Bussan & Idera Partners Co., Ltd. and the Daito Distribution Center (Daito City, Osaka Prefecture), which was developed by Mitsui & Co. Real Estate Ltd.
Mitsui & Co. Realty Management has over 10 years of experience in the real estate private fund management business. It aims to expand Mitsui & Co., Private REIT Inc.'s assets to around ¥100 billion within five years.
Mitsui has positioned asset management business as part of the "retail service" area, which is identified as a growth area in its Medium-term Management Plan. In February 2017 it invested in CIM Group, LLC, a leading US real estate asset manager, and enter into a strategic partnership with the company. Mitsui's real estate management business in Japan has expanded with the balance of assets under management ("AUM") reaching ¥450 billion as of February 28, 2018, when combined with listed REITs managed by its group companies and the asset management of Mitsui & Co., Private REIT Inc. Mitsui aims to increase AUM to ¥600 billion by 2020 by responding to the diverse needs of investors and expanding its business through investment in quality real estate.
*A private REIT is an unlisted perpetual-type real estate fund. With less volatility than a listed REIT, and in comparison with general fixed-term private funds, it enables ultra-long-term investment. This type of fund was first introduced in Japan in 2010. While Mitsui & Co., Private REIT Inc. will be the 24th fund to be launched, it will operate under a unique strategy, drawing on Mitsui's group company resources, through the joint ownership of listed REITs and major properties managed by Mitsui group companies, as well as the inclusion of properties jointly developed by the group in its portfolio.
|Name||Mitsui & Co., Private REIT Inc.|
|Investment Target||Office buildings, Commercial facilities, housing, hotel, and other types of property|
|Executive Director||Takashi Oya|
|Size of Assets||About ¥32 billion (5 properties)|
|Asset Management Company||Mitsui & Co., Realty Management Ltd.|
|Stakeholder of the Asset Management Company||Mitsui & Co. Asset Management Holdings Ltd.|
|Investors||Japanese Institutional Investors etc.|
|Name of properties||Date of acquisition|
|Shinagawa Seaside Park Tower (jointly own with MIRAI Corporation)||February 28, 2018|
|Tokyo Front Terrace (jointly own with MIRAI Corporation)||February 28, 2018|
|2 offices in Tokyo Metropolitan area||February 28, 2018|
|Daito Distribution Center||April 2018 (expected)|