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| - Joins up with subsidiary to support companies' CRE strategies - |
TOKYO, Sept 13, 2017 - (JCN Newswire) - Mitsubishi Corporation (MC) and its wholly owned subsidiary Mitsubishi Corporation Urban Development (MCUD) are pleased to announce their joint entry into a new business segment focused on the renovation and development of large-scale industrial facilities for leasing. MCUD's recent acquisition and development of two facilities located in Ichikawa City in Chiba Prefecture, Japan signaled their first move. The facilities were primarily used as temperature controlled warehouses and processing centers which, upon renovation, are leased to companies engaged in operations that need such facilities. The total cost for developing the two facilities (including investments tenants made in equipment and internal structures as required for their operations) is around 10 billion yen. Projects involving the development of large-scale industrial facilities for specific purposes such as temperature controlled warehouses and processing centers is a first for MC and also a unique business proposition within the real estate industry.
 | | Project 1 (Leasing Continued by Original Tenant) |
 | | Project 2 (Renovation for New Tenant) |
 | | Outline of the Renovated Facilities |
MCUD was able to acquire the first facility, an old industrial complex that was constructed more than 25 years ago, although the owner at the time was initially reluctant, and managed to upgrade the equipment and renovate the complex without interrupting the tenant's operations, while ultimately facilitating improved operational efficiency and reducing operational costs. The second facility was only over 15 years old, but came with less flexibility in term of layout. However, MCUD was able to successfully attract a new tenant by making major interior and layout changes that would cater adequately to the tenant's needs after renovation.
Operational facilities run by companies from a range of industries currently account for around 430 trillion yen, or 20%, of Japan's 2.52 quadrillion yen domestic real estate market(1). However, an increasing number of these companies are turning to a corporate real estate (CRE) management strategy due to changes in the business environment such as the spread of ROA/ROE based management, and basic restructuring needs caused by industry consolidation and streamlining of operations.
MC and MCUD are seeking to actively support the CRE strategies of companies who need these kinds of facilities for their operations with the aim of providing optimal solutions to the challenges they faced in the owning or leasing of real estate. MC is in a particularly good position to provide this kind of support by drawing on its broad networks across a variety of industries, project management skills, expertise in construction and engineering, and real estate consultation capabilities. MC has in the past completed real estate development projects for a wide range of assets including retail facilities, logistics facilities, and condominiums. MC intends to further expand its real estate business by providing support for the CRE strategies of other companies as one of its core businesses, while leveraging its strengths as a global integrated business enterprise.
(1) Referred by "Action Plans for the Real Estate Investment's Market Growth" by MLIT June 21, 2017
Outline of the Renovated Facilities
http://www.acnnewswire.com/topimg/Low_MitsubishiRenovatedFacilities.jpg
Scheme Outline
http://www.acnnewswire.com/topimg/Low_Mitsubishi91317Project1.jpg
Project 1 (Leasing Continued by Original Tenant)
http://www.acnnewswire.com/topimg/Low_Mitsubishi91317Project2.jpg
Project 2 (Renovation for New Tenant)
Contact:
Mitsubishi Corporation
Telephone: +81 3 3210 2171
Facsimile: +81 3 5252 7705
Topic: Press release summary
Source: Mitsubishi Corporation
Sectors: Engineering
http://www.acnnewswire.com
From the Asia Corporate News Network
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