Description of business
ORIX Group has been developing and investing in various types of real estate since the 1980s. As the global financial crisis※1 that began in 2007 led to significant changes in the business environment, we have strengthened our asset management business※2 to enhance the added value of real estate with a high level of expertise. We are developing an asset management business with many large-scale real estates entrusted to increase added value. We are also aiming for stable and efficient asset management through the operation of the integrated REIT※3.
- 1Global financial crisis ... a series of financial crises arisen around the world, starting with the bursting of the U.S. housing bubble caused by the subprime mortgage crisis.
- 2 Asset management business ... a business that manages and operates a variety of investment assets, including financial assets and real estate on behalf of companies. As for the real estate, it examines strategies for improving added value, such as property renovation and attracting tenants and develops financial plans.
- 3REIT (Real Estate Investment Trust) ... an investment trust that manages the real estate acquired based on funds entrusted by investors, and that distributes to the investors the profits obtained from the rent income. Integrated REIT involves investment in multiple uses such as offices, commercial facilities, residences, logistics facilities and hotels.
ORIX Real Estate Investment Advisors Corporation
We operate a private fund※4 with funds invested by our customers, including institutional investors and business companies, and at present, to answer the asset management needs of investors not only in Japan but also in other countries.
- 4Private fund ... a fund that raises money from a specific set of institutional investors with expertise or a small number of investors.
Entrusted with many asset management businesses of large-scale real estate
Assets under management at the end of the fiscal year ending March 2019 are approximately 540 billion yen, with a wide variety of uses, including hotels, office buildings, residences and logistics facilities. We have been entrusted with a large number of large-scale real estate asset management businesses such as Sasashima Live 24 GLOBAL GATE (Nagoya City, Aichi) complex born as a new land mark in 2017 and HOTEL UNIVERSAL PORT VITA (Osaka City, Osaka) completed in 2018, contributing to the maximization of our clients' profits.
As of the end of March 2019, we have been entrusted with the asset management of 74 properties, with a cumulative total of approx. 1.6 trillion yen regarding entrusted assets. (See chart the below.)
ORIX Asset Management Corporation
ORIX Asset Management is an asset management company of ORIX JREIT, which is classified as a REIT. It aims at steady growth of the investors’ value by the management of the integrated REIT utilizing extensive financial and real estate knowledge and expertise accumulated by ORIX Group over the years.
ORIX JREIT Inc. (a diversified REIT managed by ORIX Asset Management)
ORIX JREIT was listed on the Tokyo Stock Exchange in 2002 as the first integrated REIT in Japan. ORIX JREIT is promoting various measures to improve the quality of the overall assets under its management, attract tenants, and enhance financial stability, to realize the steady growth of value for investors.
Acquiring carefully selected properties without limiting the use or area
ORIX JREIT acquires and manages assets by utilizing the extensive property holdings of ORIX Group and its expertise and network, and the assets consist of properties for a variety of uses, including mainly office buildings, but also commercial and residential properties, logistics facilities and hotels. ORIX JREIT aims to improve the quality of our assets under management as a whole by replacing properties in a flexible manner in light of the competitiveness of the properties in the future, while acquiring carefully selected properties that will become investment targets without any limitations on use or area.
ORIX JREIT is working together with ORIX Asset Management to proactively promote ESG initiatives through business activities. These efforts were highly evaluated and ORIX JREIT was included in MSCI Japan ESG Select Leaders Index※5 since 2018. As part of efforts to promote ESG, ORIX JREIT also has issued the first green bond of ORIX JREIT to strengthen the capital procurement base by expanding our investor base for ESG investments in July, 2019.
- 5An index composed through sorting out companies that have high Environmental, Social and Governance performance. This index is selected as one of the ESG indexes at passive-management of Government Pension Investment Fund (GPIF).