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Real Estate News in Japan

Apr 24, 2018
byInvestment in Japan

J-REIT>Kenedix Retail's announcementKenedix Retail REIT Corporation ("KRR") today announced the decision to issue investment corporation bondsthrough public offering based on the comprehensive resolution adopted at the board of directors' meeting heldon September 29, 2016. >Ichigo Office REIT's announcementIchigo Office today decided to issue JPY 1 billion of bonds pursuant to its board resolution on May 29, 2017 in order to diversify and extend. Real Estate>Mitsui Fudosan's announcementMitsui Fudosan Co., Ltd., a leading global real-estate company headquartered in Tokyo, signed an agreement with Bvlgari Hotels & Resorts to open Japan’s first Bvlgari Hotel in the large-scale, mixed-use development planned for the Tokyo Station area.

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Recent News

JAPAN-REIT: Hotel Sale

Apr 23, 2018
byInvestment in Japan

J-REIT>Ichigo Hotel REIT's announcementIchigo Investment Advisors (“IIA”), the asset management company of Ichigo Hotel, decided today to sell Smile Hotel Asakusa.The sale price of Smile Hotel Asakusa is 1.4X book value and 1.3X appraisal value, generating gains on sale of c. JPY 690 million in the January 2019 fiscal period.

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Noriyuki Morimoto's Blog

Surume Finance in Japan

Apr 23, 2018
byNoriyuki Morimoto

Surume is dried squid that is commonly enjoyed as a snack to accompany alcohol in Japan. Its texture is like hard chewing gum, and it’s said that you get more flavor as you keep chewing it. A company is a living thing that swims vigorously like a live squid. However, the company shown in numbers on financial statements is just one expression of behavior in the past, which can be likened to a dead, dry squid. According to the Japan Financial Services Agency (FSA), Japanese banks finance dead surume instead of live squid. The FSA refers to the live behavior of companies as business feasibility, and is telling the banks to make financing decisions based on its evaluation. On the flip side, the FSA holds the view that banks cannot carry out their true financial role if they depend on static criteria such as historical financial statements, availability of collateral, collateral value, and availability of guarantors. To give a concrete example, companies that have been making losses for the last several years, or lack sufficient equity capital because of business fluctuations, may struggle to obtain financing from a bank. But the social role of finance is precisely to support companies through these situations. The FSA is saying that banks should base financing decisions not on the companies’ static snapshots, but on their future potential of actively expanding business, by evaluating the inner aspects of companies. But one question is whether a bank, essentially an outsider, is capable of doing something like that. It’s true that you can’t learn the behavior of live squid from surume. But observing a swimming squid is not enough to obtain necessary information to make financing decisions. You also have to dissect dead squid and dry it into surume to analyze its components. While true financing is unlikely to take place without the willingness to swim together with live squid, that is not possible for a bank in practical terms. After all, the FSA is simply reminding the banks that surume used to be live squid.

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Updates

Mar 20, 2017
byHC Asset Management

Our CEO Noriyuki Morimoto contributed an article to 20 March issue of Weekly Financial Affairs

 

Our CEO Noriyuki Morimoto wrote “What does the merger between Trust Companies of Mizuho Group and Mitsui Sumitomo Group lead to?” for 20 March issue of Weekly Financial Affairs

Mar 10, 2017
byHC Asset Management

Our CEO Norinyuki Morimoto contributed a chapter in the textbook for Kinzai’s remote learning program. Kinzai is a leading Japanese publication specialised in finance.

 

Our CEO Noriyuki Morimoto wrote the 1st Chapter “What is fiduciary duty?” for Kinzai’s textbook “Practical Application of Fiduciary Duty Principles”

Feb 01, 2017
byHC Asset Management

Our CEO Noriyuki Morimoto contributed an article to the February issue of Monthly Energy Forum

 

His article “[TEPCO] should strive to become a top global energy utility.” was one of the feature articles for “Big Bang after dismantling of TEPCO”

Dec 02, 2016
byHC Asset Management

Our CEO Noriyuki Morimoto spoke at "Insurance Risk Management Conference 2016" organised by Moody's Analytics

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