Mitsubishi Estate Co., the nation's largest developer by market value, plans to expand a property fund that targets pension investors to help boost its asset-management business.
The company aims to increase the size of an open-ended fund, or private real estate investment trust, to as much as ¥500 billion from about ¥30 billion within the next 10 years, said Tetsuji Arimori, president of Mitsubishi Jisho Investment Advisors Inc., the Tokyo-based asset management unit of Mitsubishi Estate. The asset manager will buy properties from its parent and other real estate owners, he said.
"Our main business strategy is to concentrate on growth of our open-ended fund," Arimori in a recent interview in Tokyo. "The size of such kind of growth is very much possible."