ANNUAL REPORT 2010 ANNUAL REPORT 2010 | 21 Building Business
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Business Information Business Structure of the Mitsubishi Estate Group Maximize asset Risk Funds Real estate Building Business efficiency management procurement investment Urban Development & Residential Business Investment Management Determine Conduct Consider Real estate-related Customers current research initiatives planning, International Business Mitsubishi Estate Architectural Design & Co., Ltd. Engineering status and analysis and proposals proposals and services Custom-Built Housing Hotel Business Proposal determination Real Estate Services Implementation Consolidated Analysis and review Business Segment Group Framework Business Activities Sales Breakdown Building Business • Property Management and Office Leasing Building Business segment revenues are derived mainly Group from building development and leasing in Japan. This • Commercial Asset Management and Develop- segment is also engaged in building management, ment Group parking facilities, district heating and cooling, and ¥489.6 47.4% • Retail Property Group other operations. Billion Real estate development Real estate investment Real estate liquidity Building operation and Comprehensive building Construction Design and supervision CRE strategy support • Development method • Real estate investment • Real estate-backed management analysis • Single-unit homes • Environmental assessment • Organization of CRE proposals strategy formulation support financing support • Operation and management plan • Earthquake resistance and rental and and research information • Business plan support • Market research and analysis • Securitization analysis and proposals analysis corporate housing • Consulting for urban • CRE valuation Residential Business • Residential Development Group Residential Business segment revenues are derived • Project management • Due diligence • Specified real estate • Long-term maintenance plan consulting • Facility management • Residential and development and private • Support for strategy from the construction and sale of condominiums, • Effective utilization/joint • Acquisition support joint ventures • Commissioned operation and • Energy saving and office renovation finance initiatives (PFIs) formulation and single-unit homes, and residential and commercial ventures (equivalent • Asset management • Sales and leaseback management of buildings, IT utilization in buildings • Consulting, design and implementation lots. This segment is also engaged in the management ¥350.0 33.8% exchanges/term leasehold • Real estate brokerage retail facilities and hotels and facilities supervision for environmental of condominiums and homes, along with leisure- Billion interest method) • Subleasing • Interior and exterior and civil-engineering solutions related businesses. • Provisional use • Tenant marketing renovation • Construction management • Reconstruction • Operation and management of • Barrier-free facility • Design and supervision for residential complex and corporate construction buildings and structures Urban Development & Invest- housing • Anti-aging measures for • Design and supervision for • Commercial Property Development and Invest- Urban Development & Investment Management • Property management buildings and facilities interior and exterior ment Management ment Group segment revenues are derived from the development • Conversion • Investment Management Group of income-generating real estate for investment purposes, asset management, and related activities. ¥50.6 4.9% Billion International Business • International Business Group International Business segment revenues are derived from the development and leasing of buildings con- ducted through U.S.-based Rockefeller Group, Inc. Leveraging the Resources of the Entire Group to Expand Business ¥40.1 3.9% Billion Real Estate Opportunities in Proposal-Based Marketing Architectural Design & Engi- • Architectural Design & Engineering Group Architectural Design & Engineering segment revenues Consulting & Standing at the heart of Mitsubishi Estate’s strategic marketing structure, the Real Estate Consulting & Solution neering are derived from the design and project supervision of Department works to foster deeper ties with clients through proposal-based marketing, which is conducted construction and civil engineering projects and related Solution activities, mainly through Mitsubishi Jisho Sekkei Inc. ¥19.4 1.9% across the Company as a whole. Making full use of its accumulated real estate development, planning and man- Billion Department agement expertise, the department is active in efforts to realize maximum value for its clients. Custom-Built Housing • Custom-Built Housing Group Custom-Built Housing segment revenues are derived from contracted construction of custom-built housing and related activities through Mitsubishi Estate Home Co., Ltd. ¥26.4 2.6% The Mitsubishi Estate Group A Wide Range of Solutions Covering Everything needs, such as effective methods for property utilization Billion from Individual Real Estate Needs to Corporate Real and acquisition, we create business proposals that draw Estate Strategic Support on the resources of the entire Group. Hotel Business • Hotel Business Group Hotel Business segment revenues are derived from the This department is independent from Mitsubishi Estate’s The department offers consultation for individual operation of Royal Park Hotels. eight business segments (comprised of the Building properties and multiple properties held and leased by ¥28.5 2.8% Business, Residential Business, Urban Development & corporate clients. We analyze the situation, taking into Billion Investment Management, International Business, consideration the comprehensive features of the real Architectural Design & Engineering, Custom-Built estate under review, and provide solutions that match the Real Estate Services • Real Estate Services Group Real Estate Services segment revenues are derived Housing, Hotel Business, and Real Estate Services). financial and management strategies of individual client from real estate brokerage and related services through Mitsubishi Real Estate Services Co., Ltd. In an effort to consistently provide optimal consulta- companies. In this manner, Mitsubishi Estate endeavors to ¥25.8 2.5% Billion tion and solutions services that address clients’ real estate realize the maximum value of corporate real estate (CRE). Other Other segment revenues are derived from related operations other than the aforementioned. ¥3.2 0.3% Billion 20 | ANNUAL REPORT 2010 ANNUAL REPORT 2010 | 21 Building Business 4 5 2 (Millions of yen) (Millions of yen) 500,000 200,000 1 400,000 160,000 489,696 300,000 406,606 120,000 149,836 200,000 119,204 80,000 100,000 40,000 0 2009/3 2010/3 0 Revenue from operations (left scale) Operating income (right scale) 3 6 7 1 Enhancing Urban Functions from an Area Management Perspective 4 Mitsubishi Ichigokan W Retail Property Group Shin-Marunouchi Building in 2007, followed by the Marunouchi Brick Square Mitsubishi Ichigokan has been completely Marunouchi Brick Square (commercial zone in the Opened in September 2009 as a commercial restored to what it was in 1894—the first The Building Business primarily undertakes the development, leasing and property management of office build- zone in the Marunouchi Park Building, the office building in Marunouchi. This building Active Expansion of the Retail Property Business Marunouchi Park Building) in September 2009. Along Marunouchi Brick Square offers retail func- will function as a key culture and arts complex ings in Japan’s major cities. It also handles the management of large-scale shopping centers, the operation of tions suitable for the hub that joins the for expanding the area’s cultural horizons. parking lots and district operation of heating and cooling services throughout Japan, thereby enhancing urban throughout Japan with such infrastructure development, the Company is Marunouchi and Yurakucho areas. Together with the Mitsubishi Ichigokan Museum and its functions from an area management perspective. In its retail property business, Mitsubishi Estate is pushing aggressively carrying out promotional activities. From an surrounding park, this new shopping facility is 2 Otemachi 1-chome Area 1st Class ahead with the development of various types of retail area management perspective, Mitsubishi Estate is generating synergy that attracts people to Urban Redevelopment Project Marunouchi. properties that match the unique features of each loca- focusing on operations that realize intangible benefits. On the former site of government office tion and area. The Mitsubishi Estate Group continuously In projects outside the Marunouchi area, we opened buildings in Otemachi, a multipurpose com- 5 Higashikurume Shopping plex was completed in April 2009, including Promoting the Second Stage of Marunouchi redevelopment of the Mitsubishi Shoji Building, the engages in facility planning, development, tenant leasing the Ami Premium Outlet in the town of Ami, Ibaraki Center “Kurune” office buildings, an international conference center and retail facilities (front to back: Redevelopment Furukawa Building and the Marunouchi Yaesu Building. and management operations through its comprehensive Prefecture in July 2009 and the Higashikurume Shopping This shopping center opened in November Keidanren Kaikan; JA Building and NIKKEI Mitsubishi Estate is going beyond the role of developer to This large-scale project was completed in April 2009. business structure. Center “Kurune” in Higashikurume City, Tokyo in 2009 in Higashikurume