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.
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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

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Progress on the Long-Term Management Plan 2030

Participation in a Data Center Business in the United States

On May 7, 2021, we announced our first participation in a data center business in the United States. TA Realty LLC, a Group company, is promoting the development of this project at a total cost of ¥200.0 billion to construct a campus of seven data centers (two of which the Company plans to invest in on a joint basis) in northern Virginia, where data centers are concentrated. We anticipate that global demand for data centers will increase continuously and will proactively enter this kind of outstanding investment opportunity as we move forward.

Picture: Rendering of the completed data centers

Rendering of the completed data centers

Note: Actual buildings may differ from the above rendering as we are planning a build-to-suit development.

Acquisition of New Business Development Opportunities and Upcoming Completion of New Properties
(Europe and Asia and Oceania)

In Europe, we are leveraging the know-how of Europa Capital LLP, a Group company, to promote a rental housing business in London and to acquire development opportunities in various locations in Europe, such as Barcelona and Stockholm.
We are also acquiring new development opportunities in Asia and Oceania, most notably a condominium business in Australia. Meanwhile, development projects that we have promoted in various locations are scheduled for completion one after another from FY2021 onward.

(Europe)

Picture: (Europe)

(Asia and Oceania)

Picture: (Asia and Oceania)

Sustainability Initiative

Support for the Local Community through a Residential Development for People with Developmental Disabilities

At The Green at Florham Park, a large-scale, mixed-use project combining offices, residential housing, and a hotel that it is working on in cooperation with its joint venture partners in the city of Florham Park, New Jersey, Rockefeller Group International, Inc. (RGII), has developed 62 units (completed in October 2020) for people with developmental disabilities.
As places where those with developmental disabilities can enjoy vibrant lives were lacking in this area, RGII developed these units to provide support for the creation of employment opportunities and the promotion of leisure activities. There is considerable social significance to providing living space and community-building opportunities for people with developmental disabilities in this kind of large-scale development project, which serves as a case study of a private developer shouldering a public role through urban development. As a result of these efforts, those in the supportive housing units are able to lead vibrant lives while enjoying their new living environment as members of the community.

Picture: View of The Green at Florham Park

View of The Green at Florham Park

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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