Notice to Potential Buyers

We were at one point strongly encouraged by our lenders to sell them as soon as possible. As the fear and horror has abated, the lenders are now less concerned with the pace at which we are divesting our asset. We are, however, still in a position to convert them into cash whenever a good opportunity presents itself. Our relationship with the lenders may allow us to divest them below their loan values subject to the state of our shareholder equity. It is therefore expected that divestiture and equity injection will occur in close synchronisation.

Please note that the Expected Annual Returns given here are for reference purpose only and are by no means guaranteed.

If you are at all interested in them, call Taddy Nakai, our executive officer for English speaking investors, at +81-3-6386-3412 during Asia market hours or his DoCoMo +81-90-8763-8707 during US & European market hours.

We have been also asked by many owners of properties in and around Tokyo who have no connection to the English speaking parts of the world to introduce their offerings to anyone interested. We have a few properties being offered by such owners and we do sometimes act as an agent. If you are interested, please call.

Example 1 : A 15 year-old 34-unit residential complex in Ikebukuro, mostly occupied, incoming resulting 13% annual return after maintenance costs all paid, was recently bought by an investor resident in the United States.

Example 2 :A 10-year old 8-floor small office building in Nihonbashi, all floors rented, income resulting 10% annual return after maintenance costs all paid, was recently bought by the same investor.

Please note that, in Japan, sellers are generally embarrassed to openly admit their financial situations and their lenders spend long time processing the pledge deletion on the property so that it can be sold. Negotiations almost always take time and patience is required.

We get many overseas investors asking for properties with annual returns greater than 15% in premier parts of Tokyo. It is unrealistic to expect such properties to present themselves for sale in places like Marunouchi, Omote Sando and Akasaka. Buyers should note that Tokyo is not like the capital of some developing nations and high-grade buildings in popular parts of the Metropolis will not be sold on such compromised basis.

For those investors who are looking for exceptionally high yields, they are well advised to change their expectations and learn more about the characteristics of Japanese real estate market. High-yields properties are available but not in those districts and the like. Our English-speaking executive officer, Taddy Nakai, is always happy to give you an overview. His direct extension is +81-3-6386-3412.

It is also worth noting that overseas buyers who are serious about investing in Japan should have their cash in Japanese banks ready to produce certificates of balance when necessary. A solid proof of cash-on-hand is often an effective tool to extract concessions and consequently better prices.