The service apartment business is a sector of the real estate industry that leases furnished apartments to customers for a period of one to several months packaged together with various amenities such as reception services, linen supply and cleaning. The target market focus is businesspersons of foreign-owned companies who are required to stay in Japan for long periods of time. Expectations are that this business sector will grow as the number of foreign-owned companies advancing into the Japanese market increases.

Under the concept of developing and operating profitable real estate, Mitsubishi Estate plans to acquire service apartments currently in business as well as develop new sites and operate them on a management fee business. In order to realize this objective, the company entered a collaborative relationship with The Ascott Group Limited to manage, operate and pursue investments in the service apartment business.

In addition to managing and operating the service apartments acquired and developed by Mitsubishi Estate, Ascott Japan offers management and operations services to other investors/owners in the service apartment sector. As a part of the marketing strategy to expand the management fee business, the new company will provide reception services offered to the foreign community by condominiums. Initial services (reception, etc.) are scheduled to begin in May and full operations from June 1.

Through the promotion of a joint investment scheme with The Ascott Group Limited, Mitsubishi Estate is planning to develop and acquire approximately 500~700 service apartments within the next five years.

The Ascott Group Limited is a Singapore-based entity. It manages and operates approximately 7,600 service apartments under the name “Ascott” and “Somerset” in 19 cities spread throughout 10 countries in Southeast Asia. Ascott Japan has concluded a licensing contract with The Ascott Group Limited to utilize its international network and know-how.