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Investment Strategy
<Hedged Investment>
The core strategy of Premier Investment Corporation (PIC) is to invest in and manage office and residential properties. This enables PIC to neutralize the impact of economic fluctuations on rental income and to assure stable revenues.
The combination of office buildings with their high growth potential and residential properties with their high stability creates a portfolio that decreases the impact of economic fluctuations during economic recovery and recessions, ensuring a stable income. PIC sets the ideal target for this balance at a portfolio comprised of 60% office buildings and 40% residential properties on an acquisition price basis.
[Office Buildings]
Many of the office buildings in PIC’s portfolio are medium-sized buildings boasting excellent access via mass transit.
[Residential Properties]
PIC acquires four types of residential properties: Wide, Family, DINKs and Singles. PIC works to achieve an optimum balance in accordance with market demand.
| Type | Description |
|---|---|
| Wide | Primarily intended for foreigners (i.e., executives dispatched or assigned by Western and multinational companies from overseas to offices located in the Tokyo Economic Bloc) |
| Family | Intended for average-income Japanese families (especially families with three or more members, including children) |
| DINKs (Double Income, No Kids) |
Intended for young households (without children) where both partners work. Demand among these tenants tends to focus on areas with convenient commuter access to the center of Tokyo. |
| Singles | Intended for persons living alone. Together with diversifying lifestyles, the market for more spacious and higher quality residential properties targeting singles is growing steadily. |
<Focus on the Tokyo Economic Bloc>
PIC focuses its investment on the Tokyo Economic Bloc, where the population and economy are concentrated and the economic infrastructure is well-established. This is because the potential needs of tenants are greater within this Bloc, and because more efficient property management is possible by focusing on a specific concentrated investment area, giving PIC greater potential to produce stable cash flows.
<Geographical Categories>
PIC classifies the Tokyo Economic Bloc into the three categories of the 5 Central Wards of Tokyo, the Other 18 Wards of Tokyo and the Surrounding City Area.
Although the 5 Central Wards of Tokyo constitute the primary targeted investment area, PIC is committed to achieving and maintaining a proper balance among the investment areas and diversifying the portfolio between office buildings and residential properties.
| 5 Central Wards of Tokyo | Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards. Chiyoda, Chuo and Minato Wards have long played a central role as business areas, while Shinjuku and Shibuya Wards have recently established themselves as new business areas. |
|---|---|
| Other 18 Wards of Tokyo | The remaining 18 wards of the 23 wards of Tokyo |
| Surrounding City Area | Tokyo Prefecture excluding the 23 wards of Tokyo, Kanagawa Prefecture (Yokohama City, Kawasaki City and other cities), Saitama Prefecture (Saitama City and other cities) and Chiba Prefecture (Chiba City and other cities). |
