Work quickly, with certainty, and as well as possible.
The Seven Businesses Driving Sun Frontier Fudousan.

Sun Frontier Fudousan's business broadly covers the categories of real estate revitalization and real estate services.
In the real estate revitalization business, we reduce vacancy rates by revitalizing commercial buildings. We use the capitalization method to enhance market value, selling improved buildings to buyers and investors at fair prices. We also provide building leasing services for buildings that we retain after revitalization.
In the real estate services business, we aim to become a comprehensive real estate business specializing in commercial property in central Tokyo. Here, our main focuses are sales, leasing, property management, construction planning, real estate securitization, and asset management.
Specialized in-house sections handle our sales, leasing, leased building, property management, and construction operations. The strength of this setup is that these operations can swiftly assess needs and trends in the commercial real estate market and quickly complete work.
As our real estate services business has grown, we have launched an in-house project for environmentally oriented asset businesses, an in-house strength, contributing to progress by applying the project as part of our total solutions capabilities to the real estate revitalization business. In December 2004, we entered the real estate securitization business. We offer asset management and other services through a private-equity fund that we established as part of efforts to boost our fee businesses. We also aim to foster new real estate revitalization businesses that go beyond the traditional paradigm of ownership.

Overview of Operations

Replanning

This business rehabilitates underperforming and unoccupied buildings into highly profitable assets.
In urban areas, there exist a large number of older commercial buildings whose owners feel compelled to sell for reasons such as declining earnings resulting from changing markets or needs, the desire to repay debt or the wish to divest their headquarters building. Sun Frontier Fudousan purchases such low return or unprofitable commercial properties, then prepares a revitalization plan to improve market value, including conversion (alteration of use), while considering factors such as the market, property location and customer needs. We then carry out renovation work compatible with today's market, ranging from the interior and exterior design to upgrades of electrical, air-conditioning and other systems and enhancements to telecommunications equipment to support OA and broadband. We then develop the project by securing tenants, returning the building to strong profitability, and finally selling the property to the building owner or investors at an appropriate price.

Property Management

In property management, we can handle everything from building administration to tenant management. We work as a partner of building owners to balance quality and costs in ensuring tenant satisfaction that translates into satisfaction for owners. We draw on our support system to deliver highly transparent, high-quality building management. With properties that we sell through the real estate revitalization and brokerage businesses, we offer ongoing services based on our motto of ensuring peace of mind. In our subleasing business, we look after portfolios of buildings for owners to reduce their administrative burdens, employing our leasing business to secure high returns and ensure the stable use of assets.

Commercial Real Estate Brokerage

We work closely with financial institutions, attorneys, servicers, and other partners to swiftly appraise rental office buildings and condominiums offered for sale and provide consulting for parties wishing to buy these properties. We harness our links with trust banks and realtors and other areas of our network to provide an array of information to individual investors and others wishing to buy commercial real estate. Our replanning business buys some properties satisfying our requirements based on our accumulated information and offers rehabilitated properties to customers.

Office and Store Leasing

We have a local focus in this business, specializing in office and store leasing in central Tokyo. We employ our capabilities to offer medium-sized and large buildings that can help local companies expand. We gather information on many properties to identify and match the requirements of building owners with those of prospective tenants. Note that in the building revitalization business, we attract tenants for commercial buildings to generate high returns. One key role is to feed back information on the underlying needs of customers to the replanning business after daily assessments of the requirements of building owners and tenants and working with building owners to consider ways to rehabilitate their properties.

Construction Contracting and Renovation

We upgrade and repair commercial properties, office buildings, and condominiums in line with renovation plans. We handle internal construction for tenants moving into or leaving buildings and restore premises to original condition, and fill construction and renovation orders from owners. In the real estate revitalization business, we handle design and property supervision, reflecting the owner opinions that related departments obtain in construction work to transform buildings into attractive, high-return assets.

Real Estate Securitization

We plan and set up private funds. We overhaul properties through our replanning operations, formulate diverse exit strategies, and offer properties to regular investors as high-value-added, high-return financial instruments. In 2004, we began securitizing rehabilitated buildings and started operating special purpose companies to manage divestment funds. We draw on the renovation expertise accumulated in our revitalization business to innovate schemes that reflect our care for the environment, differentiating ourselves by endeavoring to provide investors with stable long-term earnings and dividends.

Building Leasing

We own and lease some of the buildings that we have rehabilitated to generate high added value. We retain long-term ownership of buildings in favorable locations that offer high prospective income. When vacancies arise, we harness our leasing, property management, and construction planning operations to ensure stable returns. We generate rental income on properties on many buildings that we have replanned for later sale.