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July 31, 2000 |
Mitsubishi Estate and Tokio Marine Capital Enter Agreement to Lure IT Venture Business to Marunouchi |
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Mitsubishi Estate Co., Ltd. and Tokio Marine Capital Co., Ltd., a wholly owned subsidiary of Tokio Marine & Fire Insurance Co., Ltd., concluded an agreement in July 2000 for the purpose of mutual cooperation in attracting venture business to the Marunouchi District of Tokyo. Under the agreement, Mitsubishi Estate will invite promising IT-related and other venture businesses recommended by Tokio Marine Capital to move into buildings in Marunouchi, with the aim of breathing new life into the district as a business area.
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Mitsubishi Estate and Tokio Marine Capital Join Forces
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Tokio Marine Capital has an excellent track record in the area of venture business incubation. Targeting venture businesses that Tokio Marine Capital and its funds invest in, Mitsubishi Estate shall approach entities that are foreseen as positive for supporting revitalization of the Marunouchi business district and/or produce synergistic effects with existing tenants, and promote their relocation into buildings owned by the company in Marunouchi.
As a company that specializes in firsthand investments, Tokio Marine Capital has the ability to introduce venture businesses where its funds are invested to the conveniently located Marunouchi offices. Through such activities, Tokio Marine Capital will be able to offer venture businesses support not commonly provided by other venture funds.
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 Rental Payments Partially Deferred until IPO
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Mitsubishi Estate will support promising venture businesses in the following ways:
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(1)
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Arrange cooperative activities and agreements between the approximately 1,000 companies with offices in the buildings owned by Mitsubishi Estate, as well as promote exchange between venture businesses and educational institutions.
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(2)
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Reduce the initial cost of venture business operations by stating in the tenant contract that a portion of the rental payment can be deferred and is to become due at the time of initial public offering.
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(3)
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Respond promptly and flexibly to requests for office expansion and relocation.
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Subscription Rights for Venture Business Startups
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As a means of hedging against the risk of supporting venture businesses, Mitsubishi Estate receives a contingency fee in the form of stock purchasing rights (a type of quasi-stock option) from the venture businesses whose rental space exceeds a certain size.
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