Competitive Advantages and Growth Strategies

Competitive Advantages

We are a pioneer in overturning the industry-wide common practice “You cannot sell condominiums with tenants until the tenants leave.”. Our core business model, “Purchase condominiums with tenants, renovate them once the tenants have moved out, and then sell them in the actual demand market,” generates revenue stably, combining rent revenue and sales revenue.

Received the “Porter Prize”


The Porter Prize was established to bestow recognition on Japanese companies that have achieved and maintained superior profitability in a particular industry by implementing unique strategies based on innovations in products, processes, and ways of managing.
The name of the award is derived from Michael E. Porter of Harvard University, one of the few Harvard faculty members to be awarded the “University Professor,” the highest honor bestowed upon Harvard faculty members, and a leading authority on competitive strategy and international competitiveness.

We were rewarded Porter Prize in 2011 for our “unique business model” which generates revenue stably from combining rent revenue and sales revenue, along with companies such as Komatsu Ltd., world-renowned construction equipment manufacturer. We were highly rated that we focused on pre-owned condominium market, which had low liquidity, and contributed to increasing liquidity by establishing unique operations and expanding variety of financing methods.


Differentiation of Investment Targets

What differentiates us from other real estate companies is the investment targets. Our investment targets are pre-owned condominiums (unit by unit). It is a quite unique investment strategy. We do not deal in “Office Buildings” or “New Condominiums”, but in ordinary “Pre-owned Family-typed Condominiums” that are circulated in actual demand market. In particular, competitors who invest in pre-owned condominiums “with tenants” are very limited in the market.


Differentiation of Investment Strategy

We engage in “Arbitrage Transactions” focusing on the “Price Gap” between investor market and actual demand market rather than pursuing an increase in future resale price. We purchase condominiums “with tenants,” which have few competitors, hold them until the tenants leave, and then renovate and sell them as “vacant” condominiums to a wide range of buyers. This is not a “value-added” business model, such as value enhancement or revitalization, but a “market-making” business model, in which we evaluate price gap between the markets and then invest in the price gap.

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Differentiation through Risk Diversification

We hold pre-owned condominiums in a variety of areas and age range as a “portfolio”. We constantly purchase condominiums in easily accessible areas with high liquidity, mainly in the Tokyo metropolitan area. By investing in a variety of condominiums unit by unit, we diversify risks (breakdown of equipment, natural disasters, price fluctuations, tenant’s occupancy period, etc.) that may occur in each property. For more details, please refer to the consolidated financial results and presentation materials.


Differentiation of Internal Operation System (Digital Transformation)

Compared to conventional real estate industry, our operations demand an extremely high volume of accurate and quick price assessments and transactions. Therefore, we are actively developing our own systems for sophisticated analysis and introducing external services (for automation, computerization, etc.) to our internal operations. In addition, from an early stage, dual and ultra-wide computer monitors were introduced for all employees and various other measures were taken to improve operational efficiency that may not be found in conventional real estate companies, but be found on financial institutions.


Differentiation in Financing Capabilities

Our competitive and high level of financing capabilities through collaboration with financial institutions enables us to develop financing scheme in line with our business model. Conventional financing scheme for each condominium unit requires too much time and effort for appraisal, mortgaging, etc., which prevents us from business expansion. Through our established track record, we have successfully developed the financing scheme for “condominium portfolio,” which pose greater challenges in securing mortgages for the whole building.

Growth Strategies

Our growth strategies aim to maximize corporate value by providing all kinds of solutions for pre-owned condominiums, achieving sustainable growth in our core business, the purchase and resale of pre-owned condominiums. In addition, by strengthening cooperation between our core business and our solutions offered by our group companies, we are promoting the cultivation of synergies such as enhancing customer bases and elevating satisfaction levels across our group companies.

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Expansion of Investment Scale

We expand profitability through continuous scale expansion of our investments (total assets). In general, real estate business generates profits by investing large amount of capital over a certain period. In our business as well, future profit growth of both rent and sales revenue can be expected by expanding the investment in renovated condominium business and investment business.


Expansion of Business Domain

We will diversify profitability by venturing into new business. In addition to our primary focus on renovated condominium business, we have also expanded into property management, building management, and brokerage. Going forward, we will continue to diversify profitability in response to the changing business trends by entering peripheral businesses and diversifying investment targets, not only concentrating on current business.


Expansion of Market Size

We aim to become a leading company in pre-owned condominium market. We hope to stimulate pre-owned condominium market through the supply of high-quality renovated condominiums. We aim to be a leading company which promotes the expansion of the whole pre-owned condominium market by contributing to create a business environment where customers can securely trade pre-owned condominiums.