Mitsubishi Estate's Commercial Property Development & Investment Business employs a unique business model. Under this model, the business cycle starts with the development of office buildings and other types of real estate for investment. Then, the Mitsubishi Estate Group leverages its wide-ranging business functions to maximize the value of the properties developed. These properties are sold at the highest possible prices in the real estate investment market, and the proceeds collected through property sales are used for new development projects.

Recent examples of development projects regarding real estate for investment include Toyosu Front in Koto Ward, Tokyo, which was completed in August 2010. Then, in May 2011, the Shinjuku Front Tower was completed in Shinjuku Ward, Tokyo. Projects under development include the Harumi 2-chome 2-4 City Block Building Projects in Chuo Ward, Tokyo, and the Shinjuku Eastside Square, also in Shinjuku Ward, Tokyo.

Mitsubishi Estate does not limit its activities solely to office buildings: it also engages in the development of a broad range of real estate in an effort to address the diverse needs of the investment market.

For example, we are promoting the serviced apartment business jointly with The Ascott Group Limited, a Singapore-based global serviced apartment operator. Through this business, we have launched operations of the Citadines Shinjuku in Shinjuku Ward, Tokyo, and the Citadines Kyoto Karasuma-Gojo in Kyoto City, Kyoto Prefecture. Meanwhile, in April 2011, through the distribution center business, we began constructing distribution facilities in Tatsumi 3-chome, Koto Ward, Tokyo--our first development project involving such facilities--in cooperation with Mitsui & Co., Ltd. Looking ahead, Mitsubishi Estate will build a solid record in the tenant needs-oriented development of various types of real estate for investment, adhering to a "Build-to-Suit" business model.

In general, real estate for investment generates stable income gains (rental revenues) after completion. For this reason, such real estate does not have to be sold immediately after completion. Instead, it can be sold when market conditions are favorable. In other words, the seller of a property can decide on the timing of securing capital gains (the difference between the selling price and all associated costs and expenses, including land acquisition costs and building construction costs). This is the true advantage of Mitsubishi Estate in this segment. The Company will continue to bolster the asset solutions capabilities required to maximize the value of real estate. In this way, we will strive to capture new business opportunities, thereby strategically meeting the socioeconomic needs for urban development.

Toyosu Front
Directly connected to Toyosu Station on the Tokyo Metro Yurakucho Line, Toyosu Front is a multipurpose complex housing offices and retail spaces. This eco-friendly property reduces CO2 emissions by 26% compared with ordinary buildings thanks to greenery occupying 36% of the site and the effective utilization of natural air flow and sunlight. It was completed in August 2010.

Shinjuku Eastside Square
This project involves real estate development on a vast site, measuring approximately 26,000m2, directly connected to Higashi-Shinjuku Station on the Tokyo Metro Fukutoshin Line and the Toei Oedo Line. The building will house offices and retail spaces, and the office floors will boast the largest-scale floor plate among buildings within central Tokyo. Also, a variety of eco-friendly features are incorporated into the building, such as the adoption of double-skin, low-emissive, double-glazed glass, which reduces CO2 emissions associated with the building by approximately 25% compared with ordinary buildings. It is scheduled for completion in April 2012.

Tatsumi 3-Chome Development Project (tentative name)
Through this project, scheduled for completion in February 2012, Mitsubishi Estate is developing distribution facilities boasting easy access to central Tokyo, harbor facilities and airports--it is only a four-minute walk from Tatsumi Station on the Tokyo Metro Yurakucho Line and approximately 2km away from the Shinkiba Interchange on the Bayshore Route of the Shuto Expressway. While providing general versatility in the creation of certain sections, the building is being constructed in a "Build-to-Suit" manner to meet tenants' exact needs, which are determined prior to the beginning of construction.