Foreign investors access Japan’s real estate

Publicity

In the growing real estate investment market in Japan, one company has been tapping into new fields, resulting in expanding investment opportunities for foreign investors.

“Out of about 25 financial products backed by real estate we sold last year, three were sold to Singaporean investors,” said Makoto Miyauchi, president of B-lot Co., Ltd.

It is a Tokyo Stock Exchange Mothers-listed company that specializes in real estate brokerage, development, revitalization, management and leasing, as well as financial advisory such as securitization and asset management.

In a country where the language barrier and unique business culture can be a major obstacle in making international deals, B-lot is becoming a new model in the industry.

B-lot’s main business is investing in properties, increasing their value and selling them to investors when they generate a stable profit. Its uniqueness from other similar companies is to maintain long-term relationships with investors, rather than considering selling properties as just the closing of a deal. The company also engages in asset management and has offices in Tokyo, Sapporo, Osaka, Fukuoka and Singapore, all of which offer thorough support to investors.

As the real estate market in Japan is more stable than the rest of the world, it is considered an attractive market.

The Japanese real estate market is competitive and fast-moving, even for Japanese investors. For a foreigner, doing business and investment internationally is itself a challenging mission that requires extra time and research to make a decision.

The solution is to have a trustworthy partner. The same applies when investing from outside Japan. Finding a trustworthy partner is not easy and many foreign investors have a hard time investing in real estate in Japan.

B-lot emphasizes partnership and teamwork to run a business efficiently with a small number of competent people. The company gains trust from overseas investors by offering reliable financial products and quality one-stop services at local offices in the long term.

Another important service that B-lot is offering to foreign investors is assisting in securing a bank loan in Japan. Japanese banks offer considerably low interest rates, allowing investors to enjoy high yields if their loan applications are approved. B-lot also offers the arrangement of non-recourse loans to provide a wide variety of financing options.

That puts B-lot in an advantageous position as few real estate investment companies can secure properties, offer financing proposals and conduct financing arrangements.

Taking advantage of a recent increase in inbound tourists, B-lot has been active in creating financial products based hotels and similar properties and selling them to overseas investors. It will continue to maintain solid relationships with repeat customers who understand the attractiveness of real estate in Japan and employ and train non-Japanese consultants to improve services to non-Japanese customers, especially after it sells properties to them.

B-lot will continue to differentiate itself from competitors to attract inbound investments.

With the increasing number of visitors to Japan, the occupancy rate of hostels and hotels is consistently high. In addition to properties in major cities such as Tokyo and Osaka, they have a condominium at a ski resort that caters mainly to foreigners in Niseko, Hokkaido, that is managed by an Australian company.

“The Japanese population is shrinking, but the fluid population and new long-term residents from overseas may make up for the decline,” said Miyauchi. This trend will certainly further vitalize the real estate market in Japan.

B-lot tries to create different values and purposes of use to existing properties through renovation and developing new buildings to meet the diversifying needs of society. It is currently developing seven hotels and analyzing the benefits of investing in nursing homes and warehouses. “We will make further efforts to offer quality services to foreign investors to make them feel confident investing in Japan,” Miyauchi said.

For more information about B-lot Co., Ltd. (Tokyo Stock Exchange Mothers: 3452), see www.b-lot.co.jp, or email contact@b-lot.co.jp.