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Mitsubishi Estate Co., Ltd. has signed a partnership agreement with Pidemco Land Limited (headquarters, Singapore; President, Lieu Mun Leong), Singapore's leading real estate company, to explore joint investment and development opportunities in Tokyo, Japan. (Pidemco Land earlier announced that it will merge with another leading Singaporean real estate firm, DBS Land, by the end of the year, thus becoming the largest listed real estate organization in Southeast Asia.) The first joint investment under the agreement involves Pidemco Land's investment in Park House Yoyogi-Uehara, condominium complex lots currently being developed by Mitsubishi Estate in Shibuya, Tokyo. Mitsubishi Estate plans to form further alliances with various investors including foreign interests as a means of diversifying its fund-raising activities, improving capital efficiency and hedging investment risk.
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Details of Partnership Agreement
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Mitsubishi Estate and Pidemco Land will exchange information regularly and explore the possibility of joint acquisition and development of residential and commercial properties. The agreement does not through any means precludes either party from entering agreements with or launching joint business ventures with third parties.
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Outline of the First Joint Investment
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Mitsubishi Estate contracts an anonymous partnership, in which Pidemco Land shall invest, and bears 60% of the total cost of the condominium business. Pidemco Land shall receive dividends that accrue from the sales of condominium units. Mitsubishi Estate shall receive not only revenues from the sales of condominium units, but also service fees from Pidemco Land for operating the condominium business.
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Agreements with Foreign Investors
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This is Mitsubishi Estate's third real estate joint investment, following Tokyo Twin Parks (Shiodome Condominiums) in September 1998 and Shin-Yurigaoka Park House Third Avenue in February 1999. This latest project is different from preceding opportunities, as an agreement for joint investment has been concluded with a foreign investor (Pidemco Land of Singapore). For Pidemco Land, this opportunity enables it to enter the Tokyo real estate market and expand its business scope through the ties it forms with Mitsubishi Estate.
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