Characteristics & Strategy
Portfolio design strategy
The portfolio design strategy of the Investment Corporation comprises two main points: (1) The allocation of property types (two categories), and (2) diversified investment in rental housing across Japan with a focus on the 23 wards of Tokyo and three main metropolitan areas.
1. The allocation of property types (two categories)
We focus on the fact that the manner of using a rental apartment differs depending on the user's household structure, income, age and other factors, and that the demand trend also differs by the class of users. Based on that understanding, we arrive upon our investment decisions for responding to the needs of a diversified set of users by considering factors such as changes in household structure, changes in user perception toward housing and regional characteristics. It is our policy to conduct investment by selecting properties that will create a stable income and to combine the properties based on the following investment ratio. The selection is made from two categories - studio type and family type.
|Household Type||Single-person or DINKS (Double Income No Kids households)||Households with children etc.|
|Layout||1R, 1K, 1DK, 1LDK||2K, 2DK, 2LDK and above|
|Location/Living Environment||As a rule, within a 5-minute walking distance from major mass transit facilities.
Highly convenient location for living purposes.
|As a rule, within a 12-minute walking distance from major mass transit facilities or with a certain number of parking spots.
Highly convenient location for living purposes, in close proximity to educational and commercial facilities. Should not be located close to unfavorable sites (such as waste incineration facilities).
2. Diversified investment in rental housing across Japan, with focus on the 23 wards of Tokyo and three major metropolitan areas
Rental apartments are located nationwide based on the population distribution. We make nationwide investments in order to take advantage of steady demand for rental apartments, with a focus on the 23 wards of Tokyo and the three major metropolitan areas, to benefit from existing earning opportunities in other cities and to lower the risk of concentrated investments in any one specific area.
3. Target proportion of investment
- Investment ratios are based on acquisition prices.
- The three major metropolitan areas mean the Kanto metropolitan area, excluding 23 wards of Tokyo, the Chukyo metropolitan area, and the Kinki metropolitan area.
- Other major cities mean Sapporo, Sendai, Niigata, Shizuoka/Hamamatsu, Okayama, Hiroshima, Kitakyushu/Fukuoka and Kumamoto metropolitan areas and cities with a population of 300,000 or more.