News, Events and Media
BOJ eases monetary condition, issues joint statement with the Ministry of Finance to tackle deflationary environment
Bank of Japan announced that they will enhance monetary easing further. Such easing moves by BOJ are in a row in two months. Specifically, they will increase the size of their fund for asset purchase, i.e. program for quantitative easing, from JPY 80 trillion to JPY 91 trillion. They have so far utilized JPY 63 trillion under the asset purchase program.
Of particular interest at this time is that the Governor of BOJ and the Japanese Government, particularly the Minister of Finance and the Minister in charge of Economic Policy, issued the joint statement, the resolution to tackle deflationary environment in Japan. This is an unprecedented move. As stated in our Market Outlook in September, the Japanese economy experienced a surprisingly sharp deceleration recently. Thus, such a move should be warranted.
Kenzo Capital Corporation has formed a partnership with renowned firms in Germany in order to provide access to the Japanese real estate market for German institutional investors:
- iii-investments, the Immobilien-Kapitalanlagegesellschaft of UniCredit Bank AG (HypoVereinsbank), Munich, as a real estate investment company furnishes the legal platform required under the German investment law.
- Metzler Real Estate GmbH, a company of the Metzler Group, Frankfurt/Main, provides the structuring support and acts as a fund manager.
- Kenzo Japan Real Estate GmbH, Munich, has taken the initiative and acts as the placement and contact agent.
With the combined expertise of this partnership, Kenzo offers high-quality investments through the Immobilien-Spezialfonds (special real estate fund) “Kenzo Japan Residential Fund”:
Bundesbank upgrade Tokyo office for reserve diversification
Nikkei newspaper reported that Bundesbank will upgrade its Tokyo office in September to start investing in foreign currencies for diversifying international reserve portfolio of Germany. It is an exceptional move for a central bank of a major country to conduct portfolio operation in their office in Asia. According to a source close to the talk between German and Japanese monetary authorities, Bundesbank will allocate a portion of EUR 19 billion German international reserve for investing in Japanese yen and Australian dollar initially.
Bundesbank has been conducting portfolio operation in their New York office because majority of their international reserves are denominated in US dollar. According to the Nikkei article, Bundesbank cites the rationale for upgrading Tokyo office as increasing economic and political importance of Asian countries. They regard Tokyo office as Asia’s central information hub and will set up trading and research function.
Japan as the winner of the global financial crisis
Panelists at the July 5 ULI Japan Summer Conference in Tokyo couldn’t help but be reminded of the deleveraging of Japan in the mid-1990s as they discussed the current E.U. economic crisis.
Dr. Meyer zu Brickwedde pointed out the financial strength of Japan thereby being the winner oft he global financial crisis, advising Japanese investors to also look outward
Japanese banks identified as potential source of alternative liquidity
Nikkei reported that Mitsui Sumitomo Banking Corp (SMBC), together with its leasing subsidiary and Sumitomo Corporation, one of the major Japanese trading company, has agreed with Royal bank of Scotland (RBS) to take over the aviation financing business of RBS at approximately JPY 550 bio (approximately Euro 5.5 bio). This will bring the aviation business of SMBC and Sumitomo Corporation to No.4 of the global league table.
Nikkei says major Japanese banks are anticipated to be the source of alternative liquidity to replace those of the European banks. According to a senior executive of SMBC, that the bank has been offered an aggregate amount of Yen 7 trillion (Euro 70 bio) worth of loan assets from European banks since April 2011, out of which they have selectively purchased Yen 100 bio (Euro 1 bio). Other Japanese banks have received similar loan portfolio sale offers.
The Japanese Market presents itself as very robust despite devastation through the largest earthquake in history
The Japanese economy has recovered surprisingly quickly from the devastating damages of the Tohoku earthquake. GDP surged by 1.5% in the three months between July and September which is a substantial turnaround after three quarters with negative growth rates in a row. The Japanese economy will nevertheless show a contraction of 0.6% for calendar year 2011 according to our estimates. For 2012 we forecast a strong rebound to 3% growth. We base our optimistic outlook mainly on the spending by the Japanese government on reconstruction and on the economy. The Japanese Prime minister Noda ordered just recently the compilation of a fourth extra budget of at least 2 trillion yen ($26 billion) in a step which is unprecedented since postwar reconstruction. Japan has already allocated 18 trillion yen ($234 billion) in three packages since March this year. The fourth package is intended to help shore up the economic recovery which is under threat from the recent surge in the yen exchange rate, the European sovereign debt crisis and the Thai floods that have disrupted production. Moreover, we expect further asset purchases by the Bank of Japan as well as interventions on the foreign exchange market. The combination of a powerful fiscal stimulus with an ultra easy monetary policy stance will in our view create an environment of strong growth. There is even a good chance that deflation will be defeated and inflation will return at the end of 2012.
Tokyo population and foreign residents demonstrate impressive growth despite an overall small growth in population in Japan.
According to the Ministry of Internal Affairs and Communications statistics Tokyo’s population is growing fasted of all growing prefectures in Japan with a population growth of 4.6% between 2005 and October 2010. Besides Tokyo, neighbouring Kanagawa and Chiba were the largest among 9 prefectures that continue to experience population growth.
On the other hand, rural area population is declining, the prefectures Akita-ken (minus 5.2%), Aomori-ken (minus 4.4%), Kochi-ken (minus 4.0%) showed the highest population decrease from 2005 to 2010.
The number of foreign residence in Japan increased by 5.9% from 2005 to October 2010.
Overall, the country’s population rose 0.2% to 128,057,352. The Japanese population stood at 125,359 thousand, remaining almost at the same level as 2005.
Session focusing on the Japanese market opens MIPIM conference
Nikkei RE reports about this year’s MIPIM conference in Cannes where a session focusing on the Japanese market marked the opening of MIPIM. With Dr.Leonard Meyer zu Brickwedde of Kenzo Capital as the moderator, Genkai Capital Management’s President Masatoshi Matsuo and Mitsubishi Corporation’s Koichi Murata (Head of Real Estate Investment & Management Industrial Finance, Logistics & Development Group) appeared on stage. Matsuo presented an analysis of market data to an audience, which included many overseas investors, showing that the real estate market in Tokyo has bottomed out. He stated that, for overseas investors, now is the time to invest before major
Japanese real estate companies become fully active. JP Morgan Securities’ Head of Equity Research, Jesper Koll, participated via live videoconference from Tokyo and explained that Japan’s status as a technological powerhouse, represented by core cell phone and IT services, will not be shaken.
Japan – Asian Growth on solid Ground
Where and why to invest in the land of the rising sun?
Lead by The Association for Real Estate Securitization a delegation of real estate professionals from Japan discussed the Japanese real estate market in front of an audience of real estate investors and experts from other real estate related professions from mainly Germany and Europe at the Investment Location Forum at Expo Real. The panel discussed about the attraction of the market to European investors, the present opportunities with regard to asset classes, regions and cities, the strength of the Tokyo office market compared to other large office cities as well as the availability of debt for real estate investments. Questions from the audience concerned specific information such as land price, rent levels, comparison of price and return levels between Tokyo and regional cities as well as advice and guidance on the market entry for a foreign investor. continue »
Kenzo Capital Corporation will participate in Expo Real 2010: The 13th International Commercial Property Exposition will take place in Munich from October 4th to 6th, 2010
We will be presenting our company and services together with our cooperation partner to core real estate investors from Germany and Europe. For more information about this largest European real estate B-to-B trade fair for the international property market since 1998 please go to: www.exporeal.net
Program Participation: On behalf of Kenzo Capital Corporation Dr. Leonard Meyer zu Brickwedde will moderate a Japan conference as part of the Investment Locations Forum ‘Japan – Asian Growth on solid Ground’. For further information about this event and the participating panelists please go to:
EXPO REAL 2010 – Investment Locations Forum in Hall A1
Welcome to our new Information Service
Starting from July 1, 2010 we will provide our clients, business partners and visitors to this page with market information about the Japanese Real Estate Market available from Japanese and English language media source.
We will summarize articles that have been published by media such as newspapers, magazines, research institutes, on-line new providers and provide our visitors with the source of such news.
With this new service we want to inform those who are not able to follow or have access to all publications on a daily basis with a quick overview on developments, trends and transaction examples. This service is not intended to cover all Japanese real estate news releases, the articles will be chosen by our sole discretion.
Flavor of the Month
Office Market Tokyo: “In-Place Rent compared to Asking Rent developments”
The chart below shows the development of Asking Rents for new or vacant office space for class A office in Tokyo CBD 5 in comparison to the development of Traditional Rent Renewals in Tokyo. continue »
Kenzo Capital Corporation will participate in Expo Real 2009: The 12th International Commercial Property Exposition in Munich
We will be presenting our company and services together with our cooperation partner to many core real estate investors from Germany and Europe. continue »
Weekly news paper “Shukan Jyutaku” interviews Kenzo Capital president Dr. Leonard Meyer.
(News article on “Shukan Jyutaku” (Japanese weekly paper on real estate), Aug 31,2009)
Non-Japanese funds start to surface again… Kenzo Capital becomes active…
Kenzo Capital Corporation and Genkai Capital Management Co., Ltd. agree on joint venture.
FOR IMMEDIATE RELEASE Tokyo, Japan
Kenzo Capital Corporation and Genkai Capital Management Co., Ltd. announced that they would work jointly with European investors on a separate account basis. continue »
Dr. Leonard Meyer talks about real-estate investment in Japan in MIPIM News
To read more about it download PDF
Dr. Leonard Meyer moderates Japan Conference ‘Tokyo where Investment and development still rises’
To know more about the conference visit MIPIM home page
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