As the legal system related to investment was introduced and surplus corporate assets were removed from the balance sheet with the birth of J-REIT in September 2001, the real estate investment environment in Japan has strengthened and become more transparent. This has contributed to the recent economic revitalization in Japan.The real estate market, however, no longer offers easy rewards due to the economic environment. It has lost momentum since the second half of 2007, and is entering a new stage where scale competition begins and real power will be tested.

Worldwide, the changing balance of power due to higher prices of resources and lower credibility in financial markets have led to deep economic uncertainty, which could lead to a global chain reaction including non-Western countries like BRICs.
In addition, the growing regional disparities and changes in industrial workforce due to fewer children and aging society are forcing each country to change their business model. Furthermore, consumers’ needs are expected to diversify and bipolarize. We are thus in the midst of social changes affecting people’s sense of value in addition to unstable economic conditions.

Although it is difficult to be optimistic, companies must seek to gain recognition as socially valuable entities by developing businesses and patiently delivering solid results, in order to build good relations with stakeholders and gain a good reputation, in addition to economic growth.
To do this, companies must be able to adapt to the changing economic environment, be original, and launch more sophisticated busin

Our company has been in the real estate asset management business since its inauguration in 2002.
We have consolidated our business foundation through original investment strategies based on meticulous analysis, information collection through our extensive network, and strong sales network and customer base before entering the real estate development business in 2004.
The company has endeavored to create added value by using its original planning capability and network in the development business and has invested its own capital, and properties have started to be completed since 2006.
Fortunately, our business remains stable in spite of various changes and events since the company’s inception including a change in shareholders and the division of the company following enactment of the Financial Instruments and Exchange Law.

The real estate market in Japan is the second largest in the world and is a more stable investment target than other countries from due to the legal system, transparency, capital markets, corporate value, and cultural maturity. As the Japanese market is suitable for diverse investments and we expect Tokyo to achieve qualitative progress and cultural maturity as an economic city, the potential demand for development is considered to be excellent.

Under these circumstances, our company strives to create value in two aspects of real estate and maintain their coexistence after predicting future trends: one is financial products that provide investors with high secure returns by developing the business, and the other is architectural work that offers value and attractions appreciated by society for a long time.

The company will continue to develop its business based on a long-term perspective by flexibly adapting to societal and economic changes and by carefully judging what should be changed and what should remain the same from a long-term viewpoint. The creation and management of real estate that can connect with the values of the future while keeping this stance is our philosophy and motivation. The company also aims to improve results through creativity and solidity in business without losing its challenging spirit and flexibility in the real estate market of the future. We will continue to grow based on original ideas different from other companies and while keeping a step ahead of others.

I ask for your continued support and encouragement in the years to come.

Autumn 2008