INTERNATIONAL BUSINESS

Overview

The Mitsubishi Estate Group’s international business began with the establishment of a company in the United States in the early 1970s. Its geographical coverage has since expanded to include the United Kingdom, mainland Europe, and Asia and Oceania. We have been strengthening our portfolio with both management properties predicated on returns from rental fees and properties for sale premised on raising their value under a capital-recycling business model. We are promoting business expansion with respect to the real estate trading rules and business customs of each country.
Furthermore, we seek to apply optimal business models for each market based on macroeconomic data and analysis of capital and real estate markets to identify the right time to enter.

Image: Overview

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Competitive Advantages

United States

  • The sourcing power of Rockefeller Group International, Inc. (RGII), and its development know-how and track record, as well as the name recognition it brings.
  • TA Realty LLC’s networks and track record in raising the value of properties.

Europe

  • Sourcing power based on business achievements over a long period.
  • The establishment of development teams and operational effectiveness.
  • Europa Capital LLP’s networks and track record in raising the value of properties.

Asia and Oceania

  • Development know-how gained in the business in Japan.
  • Acclaim the Group has won for its track record in Japan among businesses in leading cities in Asia excluding those in Japan.
  • Relationships with leading local partners.
  • The networks Pan Asia Realty Advisors Singapore Pte. Ltd. (PA Realty) has established together with CLSA Real Estate Partners (CLSARE), which handles the real estate fund management business in Asia and Oceania.

Image: Total Assets and Ratio of Business Profit by Region (FY2020)

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Business Strategies

  • Compared with current levels, we will increase business profit by around ¥50.0 billion and double our total assets in 2030.
    To that end, we will aim to secure opportunities to invest between ¥200.0 billion and ¥250.0 billion on an annual basis.

Basic Strategies for Each Area

The United States

  • Reinforcement of capital-recycling business leveraging RGII’s know-how
  • Promotion of joint ventures with local partners
  • Expected return from investment IRR: 8%–10%

Europe

  • Implementation of investments and returns with a focus on balancing profit stability and capital efficiency
  • Promotion of business development centered on large-scale projects* that have already been decided

    * 8 Bishopsgate, London and 60–72 Upper Ground, London

  • Expected return from investment IRR: 8%–10%

Asia and Oceania

  • Increase in investment balance and establishment of a capital recycling portfolio
  • Business promotion based on the two approaches of business development in which we have a major share and of joint business with local partners
  • Expected return from investment: IRR (developed countries): 8%–10%; IRR (emerging countries): Over 10%

Image: Total Assets and Ratio of Business Profit by Region (Target for 2030)

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TOPICS

The United States

The large-scale renovation of 1271 Avenue of the Americas, a major office building in Manhattan’s Midtown area owned by RGII, was completed in December 2019. As part of the renovation, we increased the window areas of the office space by approximately 60% to enhance its open feel and upgraded the building’s facilities, including air-conditioning equipment and elevators. As of July 2020, the tentative contract rate for the building stood at over 95% and the gradual moving in of tenants was underway.

Europe

In March 2019, the 8 Bishopsgate project broke ground in London, the U.K. The new 51-story high-rise office building will replace the two existing office towers, 6–8 Bishopsgate and 150 Leadenhall Street, and offer approximately 2.8 times more leasable floor space than the two existing towers combined.

Asia and Oceania

In July 2020, we joined a residential development project in the center of Sydney, One Sydney Harbour Residences One, in cooperation with Lendlease, an Australian real estate and construction company. Located in the most popular development area in Sydney, this project is a large-scale development that comprises 72 stories and 317 units and which will further enhance our presence in Australia.

Picture: 8 Bishopsgate

8 Bishopsgate

Picture: One Sydney Harbour Residences One

One Sydney Harbour Residences One

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CORPORATE INFORMATION

  • A MESSAGE FROM THE MANAGEMENT
  • ABOUT MITSUBISHI ESTATE
  • PROFILE OF MITSUBISHI ESTATE
  • CORPORATE BRAND
  • SAFETY AND SECURITY
  • CORPORATE GOVERNANCE
  • GROUP COMPANIES