Business Information

Business Structure of the 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 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- 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 , 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, in 2009 in Higashikurume City, Tokyo, as the Building). As a project partner, Mitsubishi fourth lifestyle-oriented retail facilities in the Estate has acquired a section of an office that of producer, as it maximizes the full potential of the Adding to these initiatives, Mitsubishi Estate has November 2009. Also, in December 2009, the Company area. The center houses approximately 25 building and retail space for leasing. retail shops offering diverse merchandise that Marunouchi area and delivers new functions that meet launched the second project of the second stage, the A Fresh Breeze and a Joy—for People and City implemented the second stage of shop floor expansion at helps people realize a comfortable, enjoyable lifestyle. 3 Marunouchi 1-4 Plan the business needs of today and tomorrow. In 1998, we “Marunouchi 1-4 Plan” (tentative name), encompassing Mitsubishi Estate is evolving its retail property business to the Kobe-Sanda Premium Outlets. (tentative name) commenced the first stage of Marunouchi the rebuilding of the Togin Building, the Sumitomo Trust provide exciting new places where people of all walks of Mitsubishi Estate will continue to focus on three 6 Ami Premium Outlets Through this project, three existing office Redevelopment, a 10-year program encompassing the and Banking Co., Ltd. Tokyo Building, and the Mitsubishi life and lifestyles can gather in comfort. Since the 1989 types of retail properties: those located in the Marunouchi buildings are being reconstructed into one upgrade, reconstruction and renovation of much of the UFJ Trust and Banking Corporation Tokyo Building. Going opening of the Tenjin MM Building (IMS) in Fukuoka area and urban centers; those situated in suburban areas, Operated by Chelsea Japan Co., Ltd.—a devel- large-scale building to facilitate more effec- oper specializing in outlet shopping centers— tive land use. The new building will serve as Marunouchi district. Beginning with the Marunouchi forward, Mitsubishi Estate is tackling the third project— Prefecture, retail property operations have become a such as the Minamisunamachi Shopping Center this is the eighth CHELSEA PREMIUM OUTLETS an advanced business center that accommo- shopping center in Japan. Opened in July dates the wide-ranging needs encountered in Building in August 2002, six new buildings have been rebuilding the Mitsubishi Soken Building—through full-blown business with numerous projects completed, “SUNAMO” in Tokyo’s Koto Ward and the Izumi Park 2009 in the town of Ami, Ibaraki Prefecture, today’s business globalization and informati- completed, highlighted by the grand opening of the participation in the second phase of the Otemachi including the Yokohama Landmark Tower, Aqua City Town Tapio in Sendai City, Miyagi Prefecture; and outlet this shopping center accommodates approxi- zation. Leveraging the extensive portfolio of mately 100 retail shops. its business functions, Mitsubishi Estate will Shin-Marunouchi Building in April 2007. With the open- Redevelopment Project using a linked urban redevelop- Odaiba and the Marunouchi Building. shopping centers operated by Chelsea Japan Co., Ltd., promote this project to create a high-quality urban environment and enhance urban infra- ing of the Peninsula Tokyo in September 2007, the first ment process. In its efforts to create a more appealing city, which became a Mitsubishi Estate consolidated subsidiary structure, while giving due consideration to 7 Kobe-Sanda Premium Outlets the environment-friendliness of the project. stage of Marunouchi Redevelopment came to a close. Based on the achievements of Marunouchi Mitsubishi Estate has continued to raise the value of retail in March 2009. Maintaining this focus, the Company will Located in Kita Ward of Kobe City, this outlet From 2008, we have been pushing ahead with the Redevelopment to date, the second stage will encompass facilities in the Marunouchi area, including the promote retail property projects throughout Japan. shopping center started operations in July 2007. In December 2009, the shopping center second stage. Designed to reorganize the area as one broader and more comprehensive plans to further rejuve- opened expanded shop floors. Total shop comprehensive city block, the first project of the second nate the Otemachi, Marunouchi and Yurakucho districts, floor area almost doubled from 19,174m2 to 35,041m2, and the number of retail shops stage consisted of the Marunouchi Park Building & an area of approximately 120 hectares. doubled from 90 to 180. Mitsubishi Ichigokan, along with the simultaneous

22 | ANNUAL REPORT 2010 ANNUAL REPORT 2010 | 23 Residential Business

3

2

(Millions of yen) (Millions of yen) 400,000 50,000

320,000 40,000 350,008 240,000 30,000 309,039

160,000 20,000

80,000 10,000 15,460 35,730

0 0

2009/3 2010/3 1

Revenue from operations (left scale) Operating loss (right scale) 4 5

Integration of Residential Development and Environmental Initiatives 1 Azabudai Park House Providing High-Quality Homes That Fulfill Market Needs Sales Operations As part of efforts to promote its environmental initiatives, 3 Park House Komagomesomei Located in Azabudai 2-chome, Minato Ward, Based on a capital alliance agreement in December 2004, Mitsubishi Estate established MEC eco LIFE Co., Ltd. in This 50-unit condominium building is located Tokyo, Azabudai Park House is a 165-unit con- Through the Residential Business segment, we aim to provide ideal living environments in concert with healthy in Komagome 4-chome, Toshima Ward, Tokyo. dominium building with fixed-term land Mitsubishi Estate and Towa Real Estate Development Co., December 2008. Combining Japanese tradition and Western leasehold interest. Adjacent to the Tokyo and fulfilling lifestyles by developing and marketing condominiums, single-unit homes and residential land, as modernism, the building’s external façade American Club building, this building is situat- well as engaging in businesses such as condominium management and consulting services for the optimal use of Ltd. (“Towa”) have mutually pursued synergies through In November 2009, following joint planning with provides a sense of depth. Around the build- ed within a residential area on a hill, offering joint ventures by drawing on their respective strengths MEC eco LIFE, the Company started the construction of ing, seven types of cherry trees are planted— an open view of and the real estate. At the same time, Mitsubishi Estate operates and manages golf courses. including Somei-yoshino—creating an Roppongi area. Scheduled for completion in while gradually reinforcing their capital relationship. Since the Kichijoji Eco Mansion (tentative name), which has atmosphere very apropos for the birthplace of December 2010, the building also offers easy the Somei-yoshino. Also, as part of efforts to access to four stations on three different sub- the autumn of 2008, business conditions have persistently been certified as an eco-friendly project under the pro- put the Company’s environmental initiatives way lines, including a six-minute walk to grown severe, and market competition has continued to gram run by the Ministry of Land, Infrastructure, Transport into practice, the building uses the “soleco” Azabu-juban Station. Its composite design— system, which integrates solar power genera- factoring in the adjacent Tokyo American Expanding the Condominium Business through In step with providing high-quality condominiums, intensify. In response, with the aim of bolstering its com- and Tourism (MLIT) to promote the reduction in CO2 tion and central high-voltage power reception Club building—was realized by the renowned systems. Scheduled for completion in March Cesar Pelli, who served as the master architect Differentiation Spurred by Prime Locations and Mitsubishi Estate is reinforcing its focus on quality assur- petitiveness in residential development and sales opera- emissions associated with residential and other buildings. 2011, this is the first Park House building to for this project. Market-Oriented Product Planning ance services. Utilizing its proprietary disclosure system, the tions and maximizing its earnings power, Mitsubishi Estate This building will be packed with features that contribute introduce the “soleco” system.

In its condominium business, Mitsubishi Estate fulfills Company delivers to its customers an easy-to-understand has decided to establish a new company around January to CO2 emission reductions, including an exterior thermal 2 STYLE HOUSE MEGURO 4 Park House Enoshima MIDORIGAOKA market needs through location selection based on solid written record of property features, facilities and quality 2011. This new company will be formed through integra- insulation construction method and a solar thermal market research. The Company continues to provide its evaluation at each stage of design, construction and tion of the residential development and sales functions of utilization hot-water supply system. Compared with ordi- Scheduled for completion in February 2011, Located in Midorigaoka 1-chome, Meguro this 77-unit condominium building is located Ward, Tokyo—a green, hilltop and quiet “Park House” condominiums, mainly in the Tokyo completion. A maintenance report is regularly provided Mitsubishi Real Estate Services Co., Ltd. and Towa, while nary condominium complexes, the Kichijoji Eco Mansion is in Katase-kaigan 2-chome, Fujisawa City, residential area—this 19-unit condominium Kanagawa Prefecture. In front of the site is building provides fully order-made condomin- Metropolitan area, where demand is steady. Offering after individual property owners take up residence. having a comprehensive structure capable of performing expected to reduce CO2 emissions by 13.3 tons annually. vast Sagami Bay, and certain units offer a view iums. Scheduled for completion in February excellent product planning based on the skillful develop- In its residential leasing business, which sells proper- both residential development and sales operations. Also, Mitsubishi Estate started marketing activities for of Enoshima Island and Mt. Fuji. Featuring a 2011, this building features easy access to four three-minute walk to Katase-enoshima Station stations on three different train or subway ment of a site’s potential, Mitsubishi Estate aims for ties to prospective institutional investors, Mitsubishi Estate Through this business integration, a framework will the Park House Komagomesomei in April 2010. This new on the Odakyu Enoshima Line and located lines, including a nine-minute walk to Toritsu- approximately one-hour by train to central daigaku Station on the Tokyu Toyoko Line. competitive advantage by focusing on condominiums in promotes the development of its PARK HABIO brand, be established to allow the three companies to leverage condominium complex introduced the “soleco” system, Tokyo, Park House Enoshima provides an opti- central Tokyo that offer superior convenience; large-scale mainly in central Tokyo. The Company has already com- their respective strengths. Based on such a framework, the which combines a solar power generation system and a mal balance of urban and resort lifestyles. properties with comprehensive communal facilities built pleted 19 properties, and it will continue to supply high- Mitsubishi Estate Group will provide residential units in a central high-voltage power reception system. The use of 5 with the environment in mind; high-rise condominiums quality leased condominiums, mainly in central Tokyo, wider price range and thereby further develop its residen- this system reduces initial facilities costs while enabling PARK HABIO Shinjuku Eastside Tower that provide spectacular views; and differentiated designs that accommodate residential leasing needs, thereby tial business. At the same time, the Company will contin- the generation of electricity using solar power—a green Located in Shinjuku 6-chome, Shinjuku Ward, Tokyo, this 761-unit large-scale lease condo- achieved through collaboration with leading building achieving stable profitability. ue to deliver products and services of customers’ choice. energy source. Furthermore, this system contributes to the minium building is scheduled for completion in December 2011. With a towering view of designers and design offices from a variety of industries. reduction of electricity charges in exclusively owned areas. Shinjuku and the Tokyo skyline, the top floor Also, in response to ever-diversifying consumer tastes, the The “soleco” application has been designated as a new offers residents a swimming pool, Jacuzzi, sports gym, hot bath and bar lounge. Company develops and markets its STYLE HOUSE series of environmental business model for reducing greenhouse Providing such premium communal facilities and hospitality that go beyond those expect- fully order-made condominiums. gasses by MLIT. As such, Mitsubishi Estate will promote ed in ordinary leasing condominium buildings, this building realizes unparalleled tenant sat- the development of condominium complexes that contrib- isfaction. ute to CO2 emission reductions in the household sector.

24 | ANNUAL REPORT 2010 ANNUAL REPORT 2010 | 25 Urban Development & Investment Management

3

(Millions of yen) (Millions of yen) 100,000 85,000

80,000 68,000 91,919

60,000 51,000

40,000 34,000 50,691 40,259 33,504 20,000 17,000

0 2009/3 2010/3 0

Revenue from operations (left scale) Operating income (right scale) 1 2 4

1 Nibancho Center Building Prioritizing Development and Management in Business Opportunity 3 Harumi 2-chome 2-4 City Block Building Project (tentative name) Standing at the prestigious location adjacent to the new Belgian Embassy building in Expansion The Harumi area in Chuo Ward, Tokyo, is see- Nibancho, Chiyoda Ward, Tokyo, this is a mul- ing the acceleration of development projects tipurpose complex housing high-grade offices Providing a Broad Range of Specialized Services for Mitsubishi Estate will place equal emphasis on both aimed at supporting lifestyles that balance and residential units. Completed in July 2009, In line with its fundamental policy, the Urban Development & Investment Management business develops and work and private life. Through this project, this building provides greenery on external manages high-quality, income-generating real estate that meets diversified investor needs in the real estate Real Estate Investment Management the development and management functions to contrib- Mitsubishi Estate is constructing a leased walls and rooftop, and the site includes a vast office building. This eco-friendly project will open space totaling 1,500m2. These features investment market. We are working to expand these operations based on a two-tiered business model, Mitsubishi Estate is active in the real estate investment ute to the growth of the real estate investment market in feature greenery occupying approximately add to the property’s pleasant and relaxing promoting development functions in concert with management functions. 35% of the site, while using low-emissive, atmosphere. management business through Mitsubishi Jisho Japan. In this way, we will strive to capture new business double-glazed window glass and solar-tracker, Investment Advisors, Inc. and Japan Real Estate Asset opportunities, thereby accommodating socioeconomic electric-powered window shades to reduce CO2 emissions associated with the building. It 2 Toyosu 3-1 City Block Building Actively Promoting the Development Business by Mitsubishi Estate does not limit its activities solely Management Co., Ltd. Mitsubishi Jisho Investment needs for urban development. is scheduled for completion in March 2012. Project (tentative name) Strengthening Asset Solutions Capabilities to office buildings: it also engages in the development of Advisors provides specialized services relating to real Directly connected to Toyosu Station on the In the context of development functions, we build a broad range of real estate, including serviced apart- estate investment management through such means as 4 Yodoya-Bashi Square Tokyo Metro Yurakucho Line, this project (Osaka City) boasts superior locational characteristics. income-generating real estate to be sold as prime invest- ments and distribution centers, in an effort to address establishing private funds that invest in real estate that Housing offices and retail spaces, this eco- ment products in a timely manner after the completion of the diverse needs of the investment market. As for includes retail properties, residential properties and offic- Directly connected to Yodoya-bashi Station on friendly multipurpose complex reduces CO2 the Osaka Municipal Subway Midosuji Line emissions by 26% compared with ordinary construction and the commencement of operations. serviced apartments, we opened the Citadines Kyoto es. Japan Real Estate Asset Management manages the and the Keihan Railway Keihan Main Line buildings thanks to greenery occupying 36% through underground passages, this high- of the site and the effective utilization of nat- In July 2009, the Nibancho Center Building was Karasuma-Gojo—a joint project with The Ascott Group investments of Japan Real Estate Investment Corporation, grade office building is located in the Yodoya- ural air flow and sunlight. It is scheduled for a Japanese real estate investment trust (J-REIT) specializing bashi area—Osaka City’s mainstay business completion in August 2010. completed in Chiyoda Ward, Tokyo, as were the Yodoya- Limited, a Singapore-based global serviced apartment district. Its 18-story high-rise structure cap- Bashi Square in August of the same year in Osaka City operator—in Kyoto City in March 2010. in office buildings. These Group companies are steadily tures the eye of passersby on Tosabori-dori Street. It was completed in August 2009. and the Shijo Karasuma Center Building in January 2010 Looking forward, Mitsubishi Estate is making every growing their operations and working to continuously in Kyoto City. Currently, Mitsubishi Estate is undertaking effort to secure more business opportunities by strength- expand the balance of assets under management. 5 Citadines Kyoto Karasuma-Gojo the Toyosu 3-1 City Block Building Project (tentative name) ening asset solutions capabilities to maximize asset value (Kyoto City)

and the Harumi 2-chome 2-4 City Block Building Project for real estate customers. This is Mitsubishi Estate’s fourth project in the (tentative name). serviced apartments business jointly undertak- en with Singapore-based The Ascott Group Limited. Marking the penetration of the Citadines brand into the Kansai region, this serviced apartment targets foreigners who have come to Japan on business for one night or up to a several-month stay. It opened in March 2010.

5

26 | ANNUAL REPORT 2010 ANNUAL REPORT 2010 | 27 International Business

3 (Millions of yen) (Millions of yen) 55,000 20,000

44,000 16,000 47,382

33,000 40,187 12,000 12,526 22,000 8,000 10,496

11,000 4,000

0 2009/3 2010/3 0

Revenue from operations (left scale) Operating income (right scale) 1 2 4 5

1 Central St Giles Redevelopment A Globally Growing Real Estate Leasing and Development Business 4 River Plate House in London Project in London Acquired in May 2007, this classically designed A joint redevelopment project with Legal & In its International Business, Mitsubishi Estate operates mainly through Rockefeller Group, Inc. (RGI), which office building comprises 19,000m2 of floor General, a major U.K. life insurance company, owns and manages office buildings in such locations as New York City and London. The Company is working to space. this complex comprises 66,000m2 of offices, In recent years, real estate investment funds are glo- all Asian regions other than Japan, focusing on new retail shops and residences. Construction was expand its real estate development business, mainly across the United States and in London, while currently completed in April 2010. 5 looking to grow its real estate investment management business. Furthermore, we established Mitsubishi Estate balizing their operations, while real estate markets in Asia development projects as well as redevelopment projects One North Central in Phoenix Asia Pte. Ltd. in Singapore in October 2008, aiming to expand our Asian operations. and other emerging countries have, until recently, been aimed at enhancing the value of existing real estate. At Constructed in 2001 in Phoenix, Arizona, this 2 The McGraw-Hill Building in office building has floor space totaling rapidly expanding due to the economic growth in these the same time, Mitsubishi Estate Asia is providing support 2 New York 38,000m . Mitsubishi Estate acquired this regions. In response, in October 2008, Mitsubishi Estate to each of the Company’s business segments in promot- building in March 2008. With 51 floors above ground and five floors established Mitsubishi Estate Asia Pte. Ltd. in Singapore as ing their business globalization. below ground, the McGraw-Hill Building Advancing the Real Estate Development Business Mitsubishi Estate is also aggressively expanding its 2 6 boasts total floor space of 237,000m . Located Mainly across the United States and the United U.K. development business in London, England. Through its Asian flagship base. Mitsubishi Estate Asia will target Distribution Center in Atlanta in Manhattan, New York, this office building was completed in March 1972. Mitsubishi Kingdom the Paternoster Square Redevelopment Project completed Completed in May 2010 in Atlanta, Georgia, Estate first acquired an interest in the build- this distribution center has floor space total- ing in April 1990. In the United States, Mitsubishi Estate owns large-scale in 2003, the Company has developed a multipurpose ing 140,000m2. office buildings—the McGraw-Hill Building and the complex centered on an office building in the financial 3 Paternoster Square in London Time-Life Building—in New York’s Manhattan, and it district of the City of London. Also, we completed the

Development of this multipurpose office com- acquired the One North Central office building in a prime Bow Bells House Redevelopment Project—a joint venture plex located in the City of London was com- location in central Phoenix, Arizona, in March 2008. The with Mitsubishi Corporation—in 2007 in the City of pleted in May 2003. The Company owns two buildings: Warwick Court, with floor space of Company is currently undertaking approximately 30 London. In May of the same year, Mitsubishi Estate 29,480m2; and 10 Paternoster Square, with floor space of 34,866m2. development projects in 10 states, ranging from office acquired River Plate House, an office building situated in condominiums and distribution facilities to homes and a prime location within the City of London. Expanding on multipurpose complexes. In addition to expanding its real these successes, the Company completed the Central St estate development business, Mitsubishi Estate aims to Giles Redevelopment Project in April 2010 in London’s establish a global platform by growing its real estate West End. Through this project, Mitsubishi Estate con- investment management business. Such a platform will structed a multipurpose complex having a floor space of enable Mitsubishi Estate to strengthen organic ties among 66,000m2 and housing offices, shops and residences. its business bases worldwide and to facilitate a unified Located adjacent to Oxford Street—West End’s main approach to investor marketing, research, investment artery—and such entertainment districts as Covent decision-making and fund formation. Garden and Soho, this complex offers superior access convenience.

6

28 | ANNUAL REPORT 2010 ANNUAL REPORT 2010 | 29 Architectural Custom-Built Design & Housing

Engineering 2

2

1 3

(Millions of yen) (Millions of yen)

25,000 3,500 (Millions of yen) (Millions of yen) 40,000 4,000 20,000 2,800 30,000 3,000 20,058 19,466 15,000 2,100 29,349 26,427 2,178 20,000 2,000 5 10,000 1,400 10,000 1,000 1,392 281 370 5,000 700 0 0

0 2009/3 2010/3 0 2009/3 2010/3

Revenue from operations (left scale) Revenue from operations (left scale) Operating income (right scale) Operating loss (right scale) 1 4 6

1 Marunouchi Park Building & Responding to Ever-Diversifying Needs through Sophisticated 1 Akasaka Home Gallery “Everie” Building Homes That Accommodate Residents’ Lifestyle-Related Preferences Mitsubishi Ichigokan Combining a sharply ridged roof with the This project involved the redevelopment of a Services and Superior Technological Capabilities gentle curves of the exterior pergola, this In the Custom-Built Housing Business segment, Mitsubishi Estate, mainly through Mitsubishi Estate Home Co., city block consisting of a tower and a low-rise Everie home has a simple yet distinctive over- Ltd. (MEH), undertakes construction contracts for custom-built housing for individuals, housing complexes, building, along with the Mitsubishi Ichigokan all silhouette. The Everie home helps owners building. In line with the designation of the At the core of Mitsubishi Estate’s Architectural Design and Engineering Business are Mitsubishi Jisho Sekkei Inc. to pursue green lifestyles, optimally balancing medical clinic buildings and other types of edifices, while conducting the renovation of homes and retail shops. Marunouchi area as a Priority Urban (MJS) and MEC Design International Corporation. MJS engages in the design and administration of construction eco-friendliness and comfortable living. Redevelopment Zone, Mitsubishi Estate made Also, Mitsubishi Estate Housing Components Co., Ltd. supplies high-quality construction materials for use with a variety of environmental proposals through and civil engineering projects, building renovation work and projects related to urban and regional development, 2 “Everie” (Conservatory) the two-by-four construction method. this project. Based on these proposals, the as well as comprehensive consulting. MEC Design International directs interior design and construction projects. relaxing Ichigokan Square was created, sur- Equipped with a thermal storage floor, this rounded by the Mitsubishi Ichigokan and the open-ceiling space is an eco-friendly Everie fea- commercial zone of the Marunouchi Park ture that utilizes solar radiation for heating in Building, featuring rich greenery. Maintaining Solid Orders in the Architectural Design Also, during the fiscal year under review, MJS won the winter. In the spring and fall, with windows Realizing Customers’ Dream Homes through Proposing Eco-Friendly Home Building and Lifestyles and the ceiling window left open, this multi- and Engineering Business and Expanding Our orders for such projects as the Shenyang Major Financial function space can function, for example, as an “Handmade” Custom Design with Enjoyment in Space Utilization 2 Otemon Gakuin University Presence in Peripheral Businesses and China District Urban Planning and Design Project. With its interior patio to enjoy coffee and tea breaks. In the custom-built housing business, MEH works to meet Based on the concept of “Smart, Simple and Suitable,” No. 1 Building Major projects completed by MJS during the fiscal year Shanghai Office, which has been expanded in terms of 3 “Everie” (Living Room/Enclosed customers’ preferences by offering custom-design services. the SELECUBE lifestyle-proposal small home series This project was undertaken to reconstruct a ended March 31, 2010 included the Marunouchi Park human resources and office functions, MJS will leverage Electric-Car Garage) To this end, MEH has fostered its unique technological capa- released in the spring of 2009 offers highly cost-effective university office building. To balance the office functionality required to facilitate effi- Building & Mitsubishi Ichigokan, the Otemachi 1-chome its highly acclaimed technological expertise in architectural Because an electric car does not emit exhaust, it bilities and established its own stringent quality standards. homes through rational planning and trendy functional cient administrative operations with the archi- can be parked inside the Everie home. The space tectural design that impresses students and Type-1 Urban Area Redevelopment Project, the Hiroo and urban design, environmental protection and energy adjacent to the enclosed garage can be arranged Specifically, by combining its proprietary Super Two-by-Four specifications. Building on the success of its SELECUBE, visitors, the building’s exterior walls are cov- as a living room and for many other uses. ered with casts having as a motif the cherry Garden Forest (first and second phases), the Otemon saving, thereby steadily expanding its Chinese business. construction method, which demonstrates maximum MEH has enabled the provision of the new SELECUBE blossom, which has been designated as the Gakuin University No. 1 Building and the North Pacific 4 earthquake protection, fire resistance and durability, and SOLAR series in the spring of 2010, within the same price university flower. So, this office building will Komazawa Stage 1 Home Gallery Bank Hamanasu Complex. In the fiscal year ending March Realizing Eco-Friendly Design and Engineering the Aerotech central air-conditioning method, MEH builds range as SELECUBE. Through the adoption of a photovol- be blessed with cherry blossoms throughout This model home has a unique cubic overall the year. 31, 2011, MJS plans to complete such projects as the Considering environmental aspects has become an abso- shape with natural stone exterior walls add- homes that are comfortable to live in and are capable of taic generation system, which is increasingly being sought ing a stately impression. new office buildings for Lower House Diet Members, the lute requirement in urban development. In response to flexibly satisfying customers’ custom-design needs. by home buyers, the SELECUBE SOLAR series boasts Azabudai Park House and the new Gakushuin Girl’s Junior the demands of the time, MJS will offer eco-friendly 5 Komazawa Stage 1 Home Gallery MEH makes proposals regarding effective utilization substantially improved energy efficiency. & Senior High School Classroom Building. MJS will proposals more aggressively than ever before, at afford- (Living Room) of land and other assets when constructing housing com- Also, leveraging its extensive expertise in space aggressively pursue increased architectural design and able prices and with tangible results, to attain even higher This is a living room, raised from the first floor, plexes. Meanwhile, MEH provides fully order-made medi- design, which it has nurtured in fully order-made home with a vaulted ceiling. The outstanding open engineering orders for new construction and renovation acclaim from its customers. design and space realize high-quality relaxation. cal clinic buildings and other structures without the use of building, MEH has begun offering proposal-based services projects. At the same time, it will continue to enhance predetermined construction and architectural methods. to help home owners to more effectively and efficiently 6 Komazawa Stage 1 Home Gallery its position in such fields as construction management (Kitchen/Dining Room) In the renovation business, MEH offers an extensive utilize space in homes. Collecting various ideas presented

and district heating and cooling facilities reconstruction, This model home features a “cockpit” style origi- menu of renovation plans for homes, condominiums, by a specialized team, consisting mainly of female mem- where it boasts particular strengths based on its extensive nal kitchen and dining room, which faces an buildings, retail shops and other structures. Based on such bers, MEH has created a catalogue that provides for open-ceiling space on the first floor. This space experience. encourages communication between family an advantage, we are precisely accommodating custom- effective space utilization. Through such services, MEH is members, as well as between hosts and guests. ers’ housing desires and preferences. proposing lifestyles with enjoyment in space utilization.

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2

(Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 30,000 5,000 40,000 2,000

22,500 3,750

30,000 1,500 25,816 23,374 30,775

28,564 15,000 2,500 20,000 1,000

7,500 1,250 10,000 500 445 210 112 19

0 0 0 0 2009/3 2010/3 2009/3 2010/3

Revenue from operations (left scale) Revenue from operations (left scale) Operating loss (right scale) Operating income (loss) (right scale) 1 3 1

1 Sendai Royal Park Hotel Improving Our Brand Value and Expanding Our Hotel Chain 1 Hiroo Garden Forest Meticulously Responding to the Varied Real Estate Needs of Customers

In April 2010, this hotel marked the 15th anni- Completed in February 2009 in Shibuya Ward, versary since its opening. Adhering to its In the Hotel Business, Royal Park Hotels and Resorts Co., Ltd. coordinates the administration and management Tokyo, Hiroo Garden Forest was a joint project Led by Mitsubishi Real Estate Services Co., Ltd., the Real Estate Services Business has instituted a system that catchphrase, “HAVE A ROYAL TIME,” Sendai between Mitsubishi Estate and Mitsui Fudosan Royal Park Hotel is looking forward to wel- of each hotel to ensure consistency throughout the hotel chain. At the same time, Royal Park Hotels and Resorts Residential Co., Ltd. For this 474-unit, large- enables highly customized responses to individual customer needs. Leveraging its collective strengths and coming guests to a luxurious, high-quality, is working to enhance management efficiency and improve the level of management, pursuing the benefits of scale condominium complex, Mitsubishi Real information capabilities, the Mitsubishi Estate Group provides a wide array of optimal solutions for individual relaxing hotel experience. Estate Services is serving as the sales agent. operating the hotel chain. With hotels in Tokyo, Yokohama, Sendai and other locations in Japan, the Royal Park and corporate real estate utilization, brokerage, new condominium sales and real estate leasing. Hotel chain comprises a network of six hotels. 2 Royal Park Hotel The Fukuoka 2 (artist’s rendition)

Scheduled for opening in the summer of 2011, this hotel is only a five-minute walk from Increasing the Brand Value of Royal Park Hotels New Brand “Royal Park Hotel The [City Name]” Real Estate Brokerage Services residential development and sales, we are providing Hakata Station, located in Hakata-ekimae 2-chome, Hakata Ward, Fukuoka City. The through a Management Focus on Customer Delight Launched CRE Strategy Support System Mitsubishi Real Estate Services engages in wide-ranging comprehensive support to developers. We offer a full design concept of this hotel, offering 174 Based on the “Best for the Guest” philosophy of Royal Royal Park Hotels and Resorts is currently preparing for “CRE@M” operations relating to real estate owned by individuals range of services including site, property and market guestrooms, is “TRANSITIONAL.” Park Hotels, we go one step beyond customer satisfaction the opening of the Royal Park Hotel The Fukuoka and the CRE@M is an application service provider (ASP) and corporations. These operations include purchase, information surveys, product planning and advertising service that assists corporate clients not only by aiming to delight our guests. This approach has been Royal Park Hotel The Kyoto. As the brand name explains, in the central management of real estate- sale, brokerage for leasing services and consulting services and sales planning. 3 Royal Park Hotel The Kyoto related information, but also in the assess- (artist’s rendition) well acknowledged, enabling us to win the leading rank hotels under this new brand will be located in city centers. ment and analysis of and strategy formulation for real estate utilization. Also, we provide “Consulting SM for CRE. Scheduled for opening in the autumn of 2011, in the 2009 Japan Hotel Guest Satisfaction Index Study They will be of a relatively compact scale, with amenities M” one-stop services, which include the “CRE@M” Accelerating Leased Condominium/Office Building this hotel is only a three-minute walk from conducted by J.D. Power Asia Pacific, Inc.,* an organiza- limited to just those that are necessary. Also, these hotels corporate real estate (CRE) strategy support system, to Management Support Business and Coin-Operated Kyoto Shiyakusho-mae Station on the Tozai 3 Line of the Kyoto Municipal Subway. It is tion specializing in research and consulting relating to will balance comfort with the functionality that economy help companies raise their corporate value and facilitate Parking Lot Operations located at Sanjo-dori higashi-iru, Kawaramachi, Nakagyo Ward, Kyoto City. customer satisfaction. This marked the third consecutive hotels often provide. Offering the ultimate in hospitality, efficient corporate management. In addition, Mitsubishi Mitsubishi Real Estate Services offers a variety of lease Offering 174 guestrooms, this hotel has been year for Royal Park Hotels to win the top position in the we will work to maximize hotel guests’ satisfaction Real Estate Services is expanding outside Japan, offering management support services relating to leased condo- designed using motifs apropos to historic Kyoto. ¥15,000 to ¥35,000 per night segment. We will further through hotel facilities and services. Looking forward, support services for corporations’ international operations miniums and office buildings, and its customer base promote customer delight-focused hotel management Royal Park Hotels and Resorts will continue to seek and for foreign corporations. ranges from individuals and corporate clients to asset and operations. opportunities to establish new hotels in Tokyo and other managers of securitized real estate. We have a structure Parking Ecology Network “PEN” cities the government has designated as major cities, Sales Agency Operations for Properties such as to enable comprehensive services covering everything To contribute to global environmental efforts thereby expanding the hotel chain and enhancing the through parking operations, Mitsubishi Real Condominiums from business plan formulation and product planning to Royal Park Hotel brand power. Estate Services donates a portion of the pro- In Mitsubishi Real Estate Services’ sales agency operations, lease management after construction completion. In April ceeds from parking charges to tree-planting programs. qualified staff—people who are well versed in the unique 2008, Mitsubishi Real Estate Services established a new

* Japan Hotel Guest Satisfaction Index StudySM conducted by J.D. Power Asia Pacific, Inc. features and characteristics of individual properties, as Parking Operations Office. This office is working to Royal Park Hotels ranked in the segment of ¥15,000 to ¥35,000 per night hotels with the most common guestroom space of 20m2 or larger. The study was based on well as real estate finance, law, taxation and related develop new, automated, coin-operated parking services, 11,016 valid responses received from people who used applicable hotels within the previous year. For more details, please see the November 26, 2009 press release of the J.D. Power and Associates Web site at: matters—are on hand to assist sellers in transactions for applying Mitsubishi Real Estate Services’ extensive http://www.jdpower.co.jp/press/pdf2009/2009JapanHotelGSI_E.pdf. condominiums and other properties. In the area of expertise in lease management services.

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